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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. More

Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero … all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

A Quick Bankruptcy for GM?

By Megan McArdle
Apr 13 2009, 5:24 PM ET Comment

I'm struggling to understand how the government thinks that it can get GM in and out of bankruptcy in the blink of an eye.  In a "prepackaged" bankruptcy, where there's substantial agreement among the parties, that may be possible.  But neither the unions nor the bondholders show any signs of making generous concessions in order to get the other parties to agree.  If the government wants to make labor happy--and it seems it does--it can either pay off the bondholders to go away happy, or it can wait for the thing to snake all the way through the bankruptcy courts.  That generally takes more like a year than the "weeks" I've heard claimed.

There's no doubt that ultimately the bondholders are going to take a big, deep haircut in bankruptcy.  But the fantasy where they quietly accept it while the court crams everything desireable into one company, while leaving a few paperclips and the healthcare obligations behind for the creditors, seems . . . extreme.  Indeed, I don't think the government believes it either.  I think they're just pretending too, so they can act all horrified and sad when it turns out that the UAW has to make some concessions too.

But I don't expect either group to make concessions outside of bankruptcy, even if they'd be better off not going before the court.  Each side seems to believe for its own good reasons that someone else has the moral responsibility to bear most of the pain.  They won't take a barely decent deal if it means someone else gets a better one.


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