In breaking news out of Minnesota, American icon Polariod is filing for Chapter 11 bankruptcy protection.
This is a tragedy and should not be allowed to happen! Polariod should be given a bailout! Polaroid is “too big to fail,” just like the automakers. Polariod is an American icon, just like the automakers.
Polaroid is in trouble. Maybe it is because they failed to be on the cutting edge of technology and adapt to the age of digital photography. Maybe it is because they were mismanaged. Maybe competitors just made better products. I have no idea why Polaroid is in financial trouble, but I am glad to see that they are using legitimate financial mechanisms to deal with the problem.
Bankruptcy is unfortunate, but a necessary part of a market economy. If nothing fails, price signals are distorted to a point far beyond recognition. Preventing failure is what drives people to keep being innovative. When a company fails, it opens up opportunities for others.
While the automakers are doing nothing more than begging at the public coffers, Polariod is taking the necessary steps to restructure and again become financially viable. Will it work? Who knows. What we can be sure of is that Polaroid has a much better chance of turning things around than any of the Big Three automakers. The automakers only delay their inevitable failure. In the meantime, they will do serious damage to the US economy through their panhandling.