Interesting perspective from Dr. Pomerleano which refers to the Auto sector in the US. I am increasingly seeing that auto sector and the banking sector as parallels.

He argues that fixing the banking sector is not enough – the ‘fix’ requires that the corporate sector is also fixed.

There is a risk that the recent recapitalization of the banking sector will fail to achieve its intended objectives, because none of the measures addresses the corporate side of the picture.

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For instance, Detroit seem to have forgotten that before asking Congress to allocate tax dollars, efforts should be made to convert debt to equity and deleverage the automakers.