Three Amigos Revisited

The 'big' three automakers were in front of congressional committees today, asking for 25 billion in what were being described as 'bridge' loans.   

Just a little to tide them over, I guess.

At the heart of the discussions was whether the automaker's truest path back to financial well-being, if such a thing is even possible, would be through a loan, or through bankruptcy reorganization.

Financial experts spoke in favor of bankruptcy protection, while the heads of the Amigos spoke adamantly against that option and in favor of a loan.  This despite the fact that many believed the Amigos had more to gain through Chapter 7.

It all boils down to perspective: would YOU buy a car from a company that was in bankruptcy?  Sure, most of us know that corporate bankruptcy is more a safe haven from creditors than a financial death row, but still ...  who would honor the warranty and fix your car if the company DID die?

Our legislators and executives have a difficult decision ahead.  The path they choose will affect tens of thousands of workers, partner companies, investors, and ultimately millions of consumers.

Let's hope they come up with something good.