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...group was broken apart. Some assets were sold. (Ironically, GM acquired some of Daewoo's car company.) Other affiliates got debt restructurings; a government agency bought up Daewoo loans from the financial sector at a discount. Billions were lost. But the whole concept that Daewoo was too big to fail proved false. The reality was that Daewoo had become more burden than boon. Many of the loans it had gobbled up were effectively bad, however they were characterized on banks' balance sheets, because it was unlikely that Daewoo could have paid them off. Government officials and bank executives were simply...

Author: /time Magazine | Title: Why Detroit Is Not Too Big to Fail | 12/19/2008 | See Source »

...watch the Big Three bailout saga unfold in Washington from halfway around the world here in Hong Kong, a phrase comes to mind that used to be commonly heard in Asia: "Too big to fail." There was a time when politicians, bankers and bureaucrats in Asian countries thought that certain large enterprises were simply too important to go bankrupt, no matter how miserable their performance. The resulting unemployment would be unacceptable, the impact on the financial sector and economic growth too great. That, in effect, is the same argument being used today by supporters of a government rescue...

Author: /time Magazine | Title: Why Detroit Is Not Too Big to Fail | 12/19/2008 | See Source »

...experience in Asia over the past decade shows that no company is too big to fail, the fallout is often not as painful as the dire predictions and, in the medium to long term, economies may actually benefit by permitting their deadweight...

Author: /time Magazine | Title: Why Detroit Is Not Too Big to Fail | 12/19/2008 | See Source »

...because the Korean economy is so much smaller. Daewoo had about $50 billion in revenues. The entire South Korean gross domestic product in 1999 was only $450 billion. (GM, by comparison, had $181 billion in revenues in 2007, while U.S. GDP reached $13.8 trillion.) Daewoo seemed too big to fail...

Author: /time Magazine | Title: Why Detroit Is Not Too Big to Fail | 12/19/2008 | See Source »

Batista's Dec. 10 kidnapping seems to point to a likely source of that scared life: Mexican police. Not because they fail to catch the kidnappers but because they often are the kidnappers. Sometimes narco-criminals, especially the notorious Zetas gang, do the deed; but since Mexico's abduction spree began more than a decade ago, cops have almost always been involved (as they often are in narco-related crime as well). Federal police officers who allegedly form a kidnapping gang called La Banda de la Flor (the Flower Gang) were recently arrested in the case of Marti, whose decomposed...

Author: /time Magazine | Title: In Mexico, a Kidnapping Negotiator Is Kidnapped | 12/18/2008 | See Source »

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