Given that I’m certainly going to bitch about Obama when he makes decisions with which I disagree (and I expect there to be many), it’s only fair that I give him credit for the good ideas.
It was leaked today that the Obama team is interested in exploring a prepackaged bankruptcy for the automakers. This is not a bad idea.
Please don’t misunderstand; my preference would be for the government to not become involved at all. But that doesn’t seem to be in the cards with our current nannies, I mean, government.
So, we’re in the realm of looking for the “least bad” idea.
It’s clear we’re going to do something. This government doesn’t seem capable of allowing bad companies to pay the price for their stupidity. Simply handing the automakers more money to piss away would be the worst choice, however.
Given the situation, a bankruptcy that is negotiated prior to filing may not be a bad thing (although the Devil will be in the details). The automakers are weighed down by inane channel and labor contracts. Those will have to be renegotiated if the automakers are to have any chance of survival. Bankruptcy court allows for just that.
On the other hand, the argument that the uncertainty of bankruptcy court would hurt the companies even more, while dubious, will likely play well with the public.
So prepackage the bankruptcy, avoid the risk of a rogue (or idiotic) bankruptcy judge, and move on.
Unfortunately, reports are coming out now that the Obama team is not looking at a prepackaged bankruptcy after all. Obama, you’re already won the election! You can take a freaking stand on something now!
My next car is going to be a MINI Cooper, anyways. Well made, and both more stylish and better fuel mileage than Detroit iron.