Auto Bailout Links

I believe it's a problem that people automatically turn to the government when a company nears bankruptcy to see how it will react. Becker and Posner are always a good place to start. David Yermack argues against the bailout in a WSJ opinion chock full of facts. The strongest argument in favor of the bailout is that the Big Three just need a loan, so that they can enter Chapter 11 bankruptcy (restructuring) rather that Chapter 7 (immediate liquidation). Tom Bevan, GM car owner, received an email plea directly from the company.