this is exactly why ch.11 exists - to allow freedom to restructure
Take a look at which politicians support the bailout. Then take a look at which politicians get UAW money:
http://www.opensecrets.org/orgs/summary.php?id=D000000070
Coincidence?
(1) Due to union contracts, the big3 are unable to lay off workers as a normal company would do.
yes, i think that is understood. they're going to live in the real world one way or another
get them out of the big 3 and they can find work that the economy values. will they find it soon? no, but then again maybe trying to compete in the global economy with a high school education wasn't such a bright idea after all
this is just about a huge chunk of our economy that has been living in the 70s finally forced to join the rest of us
Sounds like Romney is advocating a "managed bankruptcy" where the government would facilitate a chpt11 bailout of the Big 3. Republicans want to avoid supporting an all out bailout whereas Democrats want help "main street" by helping the Big 3 avoid big-bad-bankruptcy. Obviously there is a lot of word wrangling going on in politics but it seems like this would be a good solution if it is communicated well.
For example, Qantas (the Australian Airline) is one of the few airlines to have made a good profit consistently. This is mostly because they have the US/Australia route all to themselves. The US counterpart hasn't been highly functional for a while & no one else was allowed in.
If United had gotten back onto it's feet at some point, they would have only had to face Qantas, who had themselves gotten cushy.
The auto market will not save them their seats.