Friday, May 29, 2009

GM bankruptcy still likely despite deal

We have been hearing about it for months - THE auto giant, GM is on the brink of bankruptcy. The bells are sounding, alarms are going off and one would think that the sky is falling.

Bankruptcy protection is something that can be a good thing - indeed, if the guidelines are closely adhered to, a person or corporation can emerge stronger and more efficient as a result of having filed. In the case of GM, things are more complicated because of the sheer size of the company, and the fact that the government is going to have to step in and handle some of the day to day running of the company, along with perhaps having to step in again financially and give them a boost. In the case of such states as California and New York, and even GM, bankruptcy would be a good thing, in that accountability would be forced.

Here is the story posted on CNN money today:

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