Pioneering Internet entrepreneur Philip Greenspun makes some good points:

Chapter 11 was designed specifically so that employees can keep their jobs, albeit possibly at lower salaries, while shareholders and creditors suffer and/or are wiped out.

…Note that the current market capitalization of G.M. is only about $2.8 billion (compare to over $100 billion for Google). The shareholders have already lost almost 100 percent of their investment. The world won’t come to an end if these shareholders go from losing 95 percent to losing 100 percent.

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