Tuesday, December 16, 2008

Article of the day

I often come across articles in my web meandering that I wish everyone in America would read. Because most people get their news from openly biased mainstream media outlets, only a small portion of Americans get the whole story of any issue.

This article in today's Wall Street Journal might be the key to the entire financial crisis and the emerging bailout culture. Though it's specifically about the auto industry, the same principles could be applied to any failing business.

If you have an interest in such things, I recommend reading this. It's about why bankruptcy is not the end of the world and explains why the UAW and the auto company's management is howling so much about bankruptcy not being an option. It's very by-the-book because it's taking on the issue explicitly from a legal sense, explaining the differences between economically failed businesses and financially failed businesses. After all, demand for cars themselves is not dropping, but demand for crappy cars is. One could argue on behalf of bankruptcy for the Detroit big 3 simply from an angle of "would anyone's lives not be immediately improved if Crysler stopped making the Sebring?" but that's probably not as strong an argument as the WSJ's article delivers.


Hillary said...

Without the LeBaron, the world would be a different place, and by different, I mean better.

shannon said...

Another excellent post!

Kirk said...

TER does a fine job of "drudging" the news. Enjoyed the article...it summarizes what I have been telling clients for a month.