Thomas E. Brewton writes, "However painful, the cleanest and most effective approach is to allow the Big three to file for bankruptcy. That might open the road to washing out all the crippling union contracts, creating new and economically viable corporations that could re-employ many of their former employees at competitive labor rates. Stockholders, of course, would likely lose their investment in the bankruptcy workout. But that too is the nature of a free-market economy. Investors take a risk in expectation of a profit. They can't always be successful, particularly when impending doom has been on the horizon as long as has the Big Three situation. Were the bankruptcy courts to approve such a settlement, the restructured, slimmed-down corporations emerging from bankruptcy would have a far better chance to survive against foreign competition. And their domestic suppliers would be in a sounder position, no longer squeezed by wafer-thin, cram-down prices and attenuated payment schedules."
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