ExpanDrive

Planet Money has a great podcast (direct mp3) exploring why bankruptcy for GM isn’t as obvious a solution as it was for the airline industry. They speak with Steve Jakubowski, a bankruptcy attorney. Steve does a fantastic job at laying out why GM wouldn’t be able to recovery from a chapter 11 filing. Who wants to buy $30,000 car whose warranty is backed by failed company – more likely to liquidate than recover? If sales dry up further, emerging from bankruptcy would prove impossible.

Tags: economy