I don’t understand why people think bankruptcy will cause a huge loss of jobs. It seems to me that companies with cash will buy these companies at firesale prices and keep the employment, and probably improve management immensely.
Wachovia got bought up by Wells-Fargo at an incredibly low price (thank god we sold our Wachovia stock last summer—our only lucky financial move). Anyway, they haven’t laid anyone off yet, because they don’t even know the company. Layoffs may occur in the summer, if they find redundancies in the combined organization. Of course, those redundancies could just as easily be in the Wells-Fargo part as the Wachovia part.
My point is that I don’t know how many jobs will be lost, but it might not be that significant compared to what we’re seeing in the industrial sector. Speaking of that, if, say Toyota bought up GM, who’s to say they might not have kept all the workers, maybe at lower wages, and tried to rehabilitate the product line.