Wednesday, February 18, 2009

Bankruptcy coming at the automakers

It really seems inevitable at this point. GM and Chrysler will be forced to declare bankruptcy and Ford can hardly handle the competitive pressure and stay afloat. They will all reorganize, as the major airlines have done several times. This evening's news that GM has requested $16 billion from the Treasury Department to remain solvent for a few more months is just not a realistic request. What about the second half of 2009. They need to reorganize, and this will not be a good thing for the U.S. economy in the short term. Longer term, it must happen.


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