Bankrupcy

A large auto parts supplier declared bankrupcy today. Delphi is one of the nations's largest and joins a growing list of bankrupt companies. The reasons why so many companies are taking this route make a lot of sense. First, if they have labor contracts negotiated when times were better, they can restructure them on more favorable terms. They can restruct debt on better terms. They can downsize the existing work force. Finally, they can turn over their pension liabilities to the federal government and let you and me pay it. We won't completely replace the retired worker retirement income which was pledged in the working years, so the workers will have less and we will have less because there are so many companies realizing how easy this is that our federal obligation will go through the roof and the money has to come from somewhere.