thereisnospoon
Gold Member
Smarter people are aware and understand the bankruptcy process. It was the emotional and uninformed which drove the federal government to bail out companies such as GM.Spot on. The bailouts should have never happened...and that means TARP, and Porkulus. They should have lawfully filed for bankruptcy.I don't believe in "too big to fail", whether it's a business or a state.
Yup. That's why bankruptcy laws are there -- so operations can continue.
The argument there was " people will lose confidence in GM's ability to honor the warranties on the vehicles they sold".. Horse hockey.
Manufacturers warranties are sold to insurance companies which are the actual payors of claims for covered issues.
I the case of the large financial institutions, their people lobbied hard and basically scared the living shit out of Washington, convincing the government that if one or more of these firms failed there would be widespread panic on the financial markets, runs on banks by people emptying their accounts and hoarding cash, etc. So the government caved and spent a shit load of money to make sure these firms stayed solvent.