TO BANKRUPT OR NOT TO BANKRUPT DETROIT ...THAT IS THE QUESTION...
MY HUNCH IS THAT THERE IS A BANKRUPTCY COMING FOR THE AUTO COMPANIES...
THERE SEEMS TO BE NO APPETITE FOR LENDING MONEY TO DETROIT ON WALL STREET OR IN WASHINGTON...
BUT CAN DETROIT AUTO COMPANIES SURVIVE ...? PROBABLY...SANS THE UNION AND THE LEGACY COSTS...DETROIT COULD COMPETE WITH FOREIGN COMPANIES IN THE SOUTH OR OVER SEAS...
BUT HERE'S THE PART THE CRITICS MISS...
THE PENSIONS AND HEALTH CARE BENEFITS WOULD FALL ON THE US GOVERNMENT...IE TAXPAYERS.
AND COUNTLESS WORKERS AND RETIREES WILL GO ON THE WELFARE ROLLS...
THE RIPPLE EFFECTS IN THE REAL ECONOMY FROM THE BANKRUPTCY COULD BE THE STRAW THAT BREAKS THE CAMELS BACK...
BECAUSE THIS CAMEL IS ALREADY FULLY LOADED...
MY HUNCH IS THAT THE AUTOS WILL BE "ALLOWED" TO GO BANKRUPT...
THE COMPANIES WILL THUS SURVIVE...BUT THE WORKERS, RETIREES AND EQUITY HOLDERS WILL NOT...
