Bankruptcy is designed for those in financial difficulty. This country has no history of bailout legislation and we didn't pass any bailout legislation until the the plutocrats in Washington and on Wall Street attempted to convince us that saving them was necessary to save us all. That's the loud discordance with those of us who believe our system is designed to reward the successful! And bankruptcy is the pathway for those that fail.

Look at three recent examples of bankruptcy and that which arose from the ashes. It is an example of the magic of the system if it is allowed to work.

Globalstar LLC arose out of the wreckage of Globalstar Telecom which began in 1995. Globalstar Telecom launched satellites for communications and went through more than $4 billion dollars. They emerged from bankruptcy in 2004.

In 2007 Globalstar launched eight additional first-generation spare satellites. Six second-generation satellites were launched on October 19, 2010. Six more second-generation satellites were launched in July 2011. Globalstar claims the bandwidth for satellite voice and data services will be good through at least 2025.

And also springing from these ashes were entrepreneurial companies such as Spot Messenger which uses the Globalstar network in addition to GPS (Global Positioning Satellite). These have made obsolete the old search and rescue operations!

Iridium, another satellite communication constellation put into orbit in the 90's by Motorola, after spending over $6 billion, filed for bankruptcy in 1999. Iridium is planning additional satellites to complete it initial plans by 2015.

Spider Trak is another GPS, messaging and communications entrepreneurial company which is using the Iridium system for tracking. Imagine trucking companies and others needing communications and the locations of their vehicles.

After a lengthy Chapter 7 process Eclipse Aerospace just announced plans to start making low-priced, high-tech small jet transports again. They will be enhanced versions of the plane made by Eclipse Aviation, the bankrupt predecessor.

In other words, the bankruptcy system is designed to take from the incompetents who mismanaged and allow the assets to transfer and be transformed by the competent.

Would anyone believe any of the companies in these examples would be the lean, mean growing firms they are if they had been given bailouts to continue with their faulty, failing and unworkable business plans??

Nursing these banks and private investment banks under the guise that our salvation is dependent upon them is ludicrous. If we would have bankrupted these guys and let the competent and forward-thinking take the helm we'd be one heck of lot better off! And I'll guarantee you there wouldn't be any of this $11 million payment to self-important bankers who do nothing more than push paper to determine the odds of the bet!

 

 

 

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