GM and Chrysler Now Have Credibility as They Finally Admit That They're Bankrupt and HAVE Been Bankrupt for Over a Year

I made a comment last year on this blog that the Big Three were already bankrupt but didn't have the guts to admit it; as of Monday it will be true for two of the Big Three.

GM is set to go into bankruptcy on Monday; Chrysler is already there and restructuring. Ford looks like it's got it's act together and successfully changed course in time to avoid joining GM and Chrysler in bankruptcy court.

The sad part about this is that they could have avoided this problem many months ago, and adapted to changing conditions much more quickly. But they chose not to, preferring not to change their already-decided auto lines to match what was happening in the economy.

I'm not interested in who was more at fault in the bankruptcy of GM and Chrysler; the management vs. union debate has been going on for many decades before this, and will likely continue for many years into the future, once this crisis has abated.

The government needs to complete this work quickly, then get out of Detroit's business. Government doesn't have time to run the auto industry; they can barely manage Washington's problems as it is, without having two auto companies to run as well.

Why Was Chrysler Taken to Bankruptcy Court in New York, and Not in Michigan, Where It's HQ Is?

I've been mulling over the Chrysler bankruptcy since it happened and one question keeps popping up:

Why did the government file for the bankruptcy in New York, and not in Michigan?

The federal government could just as easily have filed it at a federal courthouse in Michigan, as it did in New York. Many of Chrysler's debts are owed to Michigan businesses.

Not sure what the rationale was for filing this bankruptcy there instead of here, where Chrysler is headquartered.