Joseph Stiglitz, Nobel Prize Winner | December 12, 2008
Bankruptcy is the right path for Detroit car companies. ++ Under "Chapter 11" proceedings they will be able to continue and restructure production. ++ This will not undermine trust in American cars -the company executives of GM and Chrysler have already done that. ++ Pension funds will suffer, but it is better to help them directly. ++ "US workers, working for Japanese carmakers, have shown their hard work can produce cars that are desirable." ++ During restructuring, the car makers should still be given loans they need, up to $125bn.