Chrysler Goes Bankrupt

Published about 3 years ago

As the title suggests, news agencies the world over are reporting that Chrysler has filed for bankruptcy ("chapter 11"). This doesn't mean that they are out of business, not by a long shot. Going bankrupt is different than liquidating, "chapter 7".

I believe bankruptcy is a legal status, and that Chrysler will be able to stave off lawsuits from their creditors while they try to figure out a new strategy. Its not good, but its not over.

In my humble opinion, this type of evolution is natural for businesses with an open market economy (of which I am a supporter). Of course I think it stinks for the many employees that may lose their jobs, but thankfully there are social programs like unemployment insurance to cushion the blow.