Why do I favor a 1979-type of approach? The answer is two-fold:
- Chapter 11 will kill consumer demand. I was riding in a cab in San Franciso, and the driver, an African immigrant, said, "Hey, I'll ride in a plane of a company in bandruptcy, but I don't want a car with a warranty from a bankrupt auto maker." I think this is emotional, but real.
- Chapter 11 will take too long. I also think that Chapter 11 will take 2-3 years of NEGOTIATION before real work starts getting done. Yes, the companies still operate, but they will do so under "busness as usual" approaches. I want to get the radical restrucuring agreed to in the next 2-3 weeks!
Comments welcome. This is really important!