Dan Hartzell

Are Some Companies Too Big to Let Fail?

My analysis was if a large company fails, not declares bankruptcy. Many companies in the past that filed bankruptcy emerged, smaller but healthier companies. I'm talking closure. Doors shut. If Chrysler had declared bankruptcy, they might have survived or been sold. Either way in that scenario, workers would not have lost their jobs. As it was, there was new management that was able to turn the company around.

Now, I'm not advocating bailing out every company. Bear Sterns may or may not cost the taxpayers in the end. Fannie and Freddie? Well, even I think it's going to cost us.