Bankruptcy
Nope, its not me thats declaring bankruptcy.
These are a few of the companies that have declared bankruptcy in the US in the last few months.
Enron
United Airlines
US Airways
Northwest Airlines
Delta Airlines
Worldcom
Global Crossing
Adelphia
Mirant
KMart
Of course most of these companies continue to operate, almost as if nothing has changed. The one major difference is that most of them have transferred their pension obligations to the Pension Guaranty Organization, run by the US Govt. In addition, they have been able to squeeze out a bunch of concessions from suppliers and employees.
A few other companies look set to declare bankruptcy - GM, Delphi and Independence Air.
Delphi has asked its assembly line workers to take a paycut from $50/hour to $10/hour and is warning that if they do not, bankruptcy is inevitable.
Coming from India, I guess maybe I dont quite understand the significance of bankruptcies in the American business context.
I keep thinking of how things would be in India, under the following hypothetical scenario:
Bankrupt
Reliance Power
Air India
Indian Airlines
Jet Air
Sahara Airlines
BPL Mobile
Aditi Technologies
Satyam Infoway
BSES
Pantaloons
On the verge of Bankruptcy
Maruti Udyog
TVS Group
Kingfisher Airlines
Would'nt investors in India be freaking out !!
The fact that nobody really seems to think that theres anything wrong with the US Economy despite these bankruptcies shows one or more of the following:
1. The American market is super mature and deep to the extent that these bankruptcies dont affect the overall environment
2. The American psyche has gotten inured to bankruptcies
3. The whole country is on crack :-)
Of course, the bankruptcy system is set up in a way to favor the corporations more. Which in a way is good because Exectives feel able to take larger risks, with the potential for huger pay-offs.
Can you imagine what would happen to the Indian stock market if even one of the companies I listed above actually declares bankruptcy ?
These are a few of the companies that have declared bankruptcy in the US in the last few months.
Enron
United Airlines
US Airways
Northwest Airlines
Delta Airlines
Worldcom
Global Crossing
Adelphia
Mirant
KMart
Of course most of these companies continue to operate, almost as if nothing has changed. The one major difference is that most of them have transferred their pension obligations to the Pension Guaranty Organization, run by the US Govt. In addition, they have been able to squeeze out a bunch of concessions from suppliers and employees.
A few other companies look set to declare bankruptcy - GM, Delphi and Independence Air.
Delphi has asked its assembly line workers to take a paycut from $50/hour to $10/hour and is warning that if they do not, bankruptcy is inevitable.
Coming from India, I guess maybe I dont quite understand the significance of bankruptcies in the American business context.
I keep thinking of how things would be in India, under the following hypothetical scenario:
Bankrupt
Reliance Power
Air India
Indian Airlines
Jet Air
Sahara Airlines
BPL Mobile
Aditi Technologies
Satyam Infoway
BSES
Pantaloons
On the verge of Bankruptcy
Maruti Udyog
TVS Group
Kingfisher Airlines
Would'nt investors in India be freaking out !!
The fact that nobody really seems to think that theres anything wrong with the US Economy despite these bankruptcies shows one or more of the following:
1. The American market is super mature and deep to the extent that these bankruptcies dont affect the overall environment
2. The American psyche has gotten inured to bankruptcies
3. The whole country is on crack :-)
Of course, the bankruptcy system is set up in a way to favor the corporations more. Which in a way is good because Exectives feel able to take larger risks, with the potential for huger pay-offs.
Can you imagine what would happen to the Indian stock market if even one of the companies I listed above actually declares bankruptcy ?
Comments
i guess its more to do with the
perception in the minds of people
that "American market is super mature and deep to the extent that these bankruptcies dont affect the overall environment"
if 10 companies have declared bankruptcy in the US in the last few months this is affecting the economy seriously, but not th
the entire stock market in india runs mostly on perception of the company's potential is.... reliance brothers have a fight over ownership the stock goes down big time ...is in it crazy and immmature reaction ? this would not happen in the US.
I think the difference seems to be that bankruptcy gives a lot of benefits/flexibility to the company in the US as compared to India.