Joseph Stiglitz, former Chief Economist of the World Bank and an economist I greatly respect and usually agree with, published an oped in the Financial Times yesterday arguing for a Chapter 11 filing for US automakers [1] (free registration may be required for viewing). While I agree with the very real need for bankruptcy style restructuring, I continue to be wary of the impact of the stigma and public perception of a bankruptcy filing. He references the use of government guarantees of Chrysler in ’79 as an example of how to perhaps inspire confidence. However, it must be remembered that in ’79 Chrysler did not file for bankruptcy, it just got loan guarantees to avoid bankruptcy.