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Why not Chapter 11 for the Big3?

I am wondering what everyone's thoughs are on the Big3 bailout? Why are they not having to file Chapter 11 instead of asking to be bailed out? This way they could renegotiate contracts and try to get a working budget. Why should we be so quick to throw money at a problem? Has a bailout ever worked without a company going into Chapter 11, in history?

 
QuinnMae

Asked by QuinnMae at 1:52 PM on Nov. 17, 2008 in Politics & Current Events

Level 48 (292,400 Credits)
This question is closed.
Answers (14)
  • I think it would be sad to lose GM but why can't they just do a bankruptcy I mean if they piss poorly managed the money and promised retirement funds they couldn't guarantee does that mean we should have to pay them. I mean there is truly no way to guarantee things like this in a free market. My pay has been cut in half and if the little companies can just tell their employees too bad why can't the big 3 do the same. I am not being uncaring just fair there isn't enough money to keep doing this with and what distinguishes between a GM employees pension or a employee of a failed phone company or a failed internet company, or airline. It's life and life sucks sometimes.
    SheriSanchez

    Answer by SheriSanchez at 2:21 PM on Nov. 17, 2008

  • We are a welfare country now so everyone has their hands out. I hope the government gets a clue and now realizes bailouts are not the answer. The economy and housing markets are correcting themselves. Companies will shut down people will lose jobs already happening. Taxes have to be cut even for those making over 250k. We need to get the cash flowing in our country. We need less bailouts and more personal responsibility. Bailouts only make things worse.

    Anonymous

    Answer by Anonymous at 2:04 PM on Nov. 17, 2008

  • I meant to say Amen Sister I totally agree, 100%
    SheriSanchez

    Answer by SheriSanchez at 2:27 PM on Nov. 17, 2008

  • I think we need to just let them fail.
    Anonymous

    Answer by Anonymous at 2:27 PM on Nov. 17, 2008

  • My father is a GM employee and HE THINKS GM SHould NOT GET A BAILOUT... It's merely a 25Billion dollar band aid. I agree

    They need to go bankrupt like the rest of us. What is going to happen in 2 years when they need more money?!?!
    grlygrlz2

    Answer by grlygrlz2 at 2:28 PM on Nov. 17, 2008

  • I believe our economy is in such a fragile state that the loss of at least 3 million jobs could be too large a hit to take right now. The auto industry affects so many other industries. I think we have to push the concept of what is "fair or unfair" to the back and deal with the potential damage each loss will have on the economy. My frustration is that we have to get our information for the most part from politicians who are known for spinning information to their benefit. We have to become an educated electorate and hold our public officials accountable.
    EarthMuffin1965

    Answer by EarthMuffin1965 at 2:38 PM on Nov. 17, 2008

  • I guess the only problem I am seeing with the difference between Chapter 11 and bailout is that the bailout doesn't change the budgeting of the company. I know the Pelosi says that there would be 'conditions' to the bailout, but do we really need to assign another job to someone to make sure the companies are upholding their agreement? And do you really think they will (no)? Some of these employees are being paid $75.00 / hr. You can't seriously tell me that there is no way for these employees to live on a lower wage. Chapter 11 NEEDS to happened with the Big3 for them to succeed in the long run. If we go with a bailout, the money will run out and we will just be $25 billion behind. This is also the only way to ensure that the retired Big3 employees still get benefits. If they fail, they all get nothing.

    Anonymous

    Answer by Anonymous at 2:45 PM on Nov. 17, 2008

  • I thought the 1st bailout was about the worse idea ever. The stimulus checks stupid. This Bailout give me a break. With all that money spent they could have handed it to every citizen that works files taxes and so on and we all would have gotten a whole lot of money. What do you think most people would do w/ 2-400k? I think a lot would buy a new car, pay off old loans, maybe buy a new home or fix up there current. That would have stimulated our economy helped fix a lot of banks and so on. But thats a too far out there idea.. But its just as crazy sounding as 700bil to bail out some banks and such. and another however much to bail out these auto makers..
    o0gone0o

    Answer by o0gone0o at 2:57 PM on Nov. 17, 2008

  • Im an anon...
    and im going to yell about welfare and blame it on welfare ..
    and im going to pretend i dont receieve welfare, in all honesty i do,

    and im just gonna play it off and blame every other woman who admits shes on welfare because i want to feel better about myself ;o)
    Anonymous

    Answer by Anonymous at 3:18 PM on Nov. 17, 2008

  • Stupid Stimulus checks huh ;o)

    WHAT HAPPEND TO THE LAST ONE, cashed it in a hurry i bet.....just like your screen name,
    IT WAS gone...before it was in your hand, o0gone0o

    and make sure you spend the next one faster, k?
    Anonymous

    Answer by Anonymous at 3:20 PM on Nov. 17, 2008