“Just Say No to Detroit,” by David Yermack, Wall Street Journal, 15 November 2008. (May be available for only a limited time without Wall Street Journal registration.)
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“Just Say No to Detroit,” by David Yermack, Wall Street Journal, 15 November 2008. (May be available for only a limited time without Wall Street Journal registration.)
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He makes some good points, although I cringe somewhat at his notions of collective savings and the implication that a public responsibility for management mitigates against a bailout. It is the job of shareholders to steward their investments. These days, people often see stocks as a way to ride a gravy train rather than seeing stocks as an investment that carries oversight responsibility. Apart from general principles of limited government, the reason that automakers should get no bailout is that taxpayers should not be made to subsidize stockholders who fail to do their job.