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Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
Tort bar raised to a new high. " >>
Not really. There's winners and losers in every bankruptcy.
Probably $1000 of every new car's cost is for lawyers and litigation. Same for $100 or more of every insurance premium. We - each and every one of us - pay a very high price for our litigious society. 5% of the world's population with 90% of the world's lawyers doesn't come cheap.
Our national health care cost would drop 30% without the cost of litigation/insurance.
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
Unfortunately, our "leaders" gave that 0% money to companies holding lots of level 3 and 4 "assets" that were worth a whole lot less than they claimed. So despite making easy money on new loans, they have continuing writeoff losses on the junk.
There's a LOT of junk left, thus a lot of losses yet to be booked. And if the economy keeps deteriorating, the losses will keep coming and growing.
Wall Street Breakfast: Must-Know News [View article]
I sure would like to see the "improvements" that the World Bank uses to predict 2% growth in 2010. Getting worse slower is NOT a turnaround.
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
In reality, the kindest, most effective thing that one can do for an insolvent company is put it into bankruptcy. There a court appointed conservator takes over the operations and the fools that ran the company into the ground get to go golfing ( unfortunately for US, the fools that ran 'em into the ground are Paulson's buddies, who he is treating especially well)
In bankruptcy the assets get bought up by lean, mean capitalists who get the company back to work less the enormous debt burden. Look at Lehman - they were back in business with 10,000 workers back on the job in days.
Put all the insolvents where they belong - in bankruptcy. Yes, the losses will be huge. Yes, it will hurt all Americans. But it will allow a fresh start. And that's a lot better than a decade or two of muddling through.
Losses the size of what Wall St and the automakers have CANNOT be worked out. Why try ? It is just a waste of time, money and effort.