I have some sympathy with David's point of view here; there is nothing in particular wrong with bankruptcy. On the other hand, the massive, systematic use of bankruptcy in the airline industry as a normal part of financial operations rather than an extreme measure, does surely indicate some underlying problem. It's rather like insurance claims (in fact you can model the use of bankruptcy protection as a form of insurance) - insurance claims are a normal part of the efficient running of a capitalist system but if you've got a small group of claimants making big claims every year then something is up.
best dd -----Original Message----- From: PEN-L list [mailto:[EMAIL PROTECTED] Behalf Of David B. Shemano Sent: 20 September 2005 20:53 To: [email protected] Subject: Re: Neoclassical bizarreness!!! Did someone mention my name? I agree that the article was quite good. However, I did not follow why the story supports the notion that deregulation did (does) not work. Why is bankruptcy evidence of systemic failure? Why should the shareholders of airlines, as opposed to any other industry, be guaranteed a rate of return? Why should the employees of airlines, as opposed to any other industry, be guaranteed employment and a specific level of wages and benefits? >>
