Legal Commentary

Short term

Re the auto bailout:

I wonder if the Big Three's pitiful performance can be blamed in any way on the American system of corporate governance? Were the incentives to maximize short-term profits to blame for Detroit's ills?

I'm thinking of how GM and Chrysler (and Ford to a lesser extent) were so eager to give up on the small car market in favor of big SUVs. They had to know that low gas prices were unsustainable. SUVs were profitable, but didn't anyone worry about long-term profitability if gas prices rose and SUVs became less attractive?

Full post as published by Glorfindel of Gondolin on December 13, 2008 (boomark / email).