OpEdNews
Post a Comment
Original Content at
http://www.opednews.com/Quicklink/Robert-Reich-The-Real-Dif-in-Best_Web_OpEds-081114-545.html
(Note: You can view every article as one long page if you sign up as an Associate Member, or higher).

November 14, 2008

Robert Reich: The Real Difference Between Bankruptcy and Bailout

By Laudyms

Why is the Treasury substituting government bailouts for chapter 11? Even if you assume Wall Street's major banks and insurance giant AIG are so important to the national and global economy that they can't be allowed to fail, that doesn't mean they have to be bailed out. They could be reorganized under bankruptcy protection. Their creditors, shareholders, and execs would take bigger hits- but they took that risk.

::::::::

Why is the Treasury substituting government bailouts for chapter 11? Even if you assume Wall Street's major banks and insurance giant AIG are so important to the national and global economy that they can't be allowed to fail, that doesn't mean they have to be bailed out. They could be reorganized under bankruptcy protection. Their creditors, shareholders, and execs would take bigger hits- but they took that risk.

Submitters Bio:

Lifelong reader, sometime writer with eclectic tastes and libertarian leanings. Don't hold my semi-notorious Berkeley history against me, I settled down so completely after 40 that I can barely recall my loosy-goosy self. But it sure beats going to the same party every night.

Back