In the NYT's op-ed page, Daniel Kahneman and Andrew Rosenfield write that while bankruptcy protection can work well for certain companies, it would likely prove to be disastrous for U.S. automakers because of the "uncertainty and stigma" that it would produce with consumers. Businesses have a natural propensity to fight until the bitter end, but the writers suggest that they should give up this instinct and all three companies should file for bankruptcy protection simultaneously. This would send the signal that "the problem is systemic" and that an industrywide solution is in the works. Of course, such coordinated action would have to be facilitated by the government. "Any other form of bailout for Detroit would likely require a long political process, and that would only worsen the economic destruction."
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