Relevant and even prescient commentary on news, politics and the economy.

The Beginning of the End of Corporate Gaming of the Bankruptcy Laws?

It will take a few more months of legal maneuvering before American finally throws in the towel and agrees to a US Airways merger. American executives and directors will no doubt have to be bought off with golden parachutes, while trade creditors such as Hewlett-Packard and Boeing will likely be brought on board with promises […]

Bankrupt Rhetoric

Peter Dorman at Econospeak comments:  Bankrupt Rhetoric  I woke up this morning to Paul Ryan, describing his budget proposal, as quoted in the New York Times: “This is about putting an end to empty promises from a bankrupt government.” Bankrupt government? Let’s consider this more closely. The normal meaning of bankrupt is negative net worth, […]

Still fixing the fixed, fixed healthcare system

by Daniel Becker I posted in 7/2009 on the issue of fixing our healthcare system based on the Massachusetts model. The first was Massachusetts is fixing the fixed healthcare system.   The second was a followup to the first:  Fixing the fixing. Healthcare Deja vu. The issue was that we are dancing around. All the proposals […]

‘Ruthless’ bankruptcies

The NYT has a story on what look to be ‘ruthless’ bankruptcies in store for companies who sought or were forced to take too much leveraged debt: American companies currently have more than $1.7 trillion in S.&P.-rated bonds and loans maturing from 2011 to 2014. The total debt load coming due will climb steadily over […]

Nails: The 2012 Republican candidate for President?

From Lenny Dyksytra’s letter to friends about his bankruptcy filing yesterday: William McKinley filed for protection while serving as Ohio’s governor in 1893. He was in debt to the tune of $130,000 (an insurmountable sum in those days!) before some friends eventually helped to bail him out. Three years later, he occupied a desk in […]