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Comment by rayiner

3 months ago

Fascinating article. One sentence jumped out to me:

> So Chapter 11 is a relief valve for airlines struggling under the weight of their fixed costs; but it doesn’t really do much to help the system as a whole

The American founders writing a uniform federal system of bankruptcy was a stroke of genius that's been paying dividends for 250 years now.

9 comments

rayiner

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flextheruler  3 months ago

Chapter 11 bankruptcy as well as all modern corporate law has its roots in the tycoons of the late 19th century. They lobbied and wrote it which is why it's corrupt.

  • rayiner  3 months ago

    U.S. bankruptcy law is a foundational social technology that enables the marvelous world around you to exist.

    • zbentley  3 months ago

      Even if that's true, current bankruptcy law is still really far from socially optimal.

      There are a lot more points on the "how does your system respond to business failure" spectrum besides low-consequence ch11/better-luck-next-time and debtors' prison.

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    • oa335  3 months ago

      > U.S. bankruptcy law is a foundational social technology that enables the marvelous world around you to exist.

      Can you please expand? This is an expansive claim.

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