One of the main arguments that General Motors (NYSE: GM) has made against a bankruptcy filing is that Chapter 11 would destroy its entire supply chain, causing a wave of bankruptcy filings that would thrash the entire economy.

But someone who actually knows what he's talking about says that's not the case. In fact, Harvard Law School bankruptcy expert Mark J. Roe writes in today's Wall Street Journal that "GM may run out of cash to pay its suppliers -- whether it files for bankruptcy or not. But GM's supply network is probably more robust with GM bankrupt, as Chapter 11 assures that suppliers get paid out of whatever cash GM has."

Another day, another black eye for Wal-Mart. Stores, Inc. (NYSE:WMT). When a Hong Kong-based labor group said that several major suppliers to global retaler Wal-Mart failed to pay legally required wages or provide health insurance and allow poor working conditions, you just know it's not going to be a good day for the retail behemoth.

Although Wal-Mart can't control its Chinese suppliers and their actions, it can set minimum standards with the suppliers it does business with, insofar as the way workers are treated. Wal-Mart's response so far is that it is looking into the claims in a report issued this week by China Labor Watch. So far, managers of two of the business partners of Wal-Mart in China have denied the accusations.

In a survey, the China Labor Watch group stated that 15 Wal-Mart suppliers were found to pay as little as half the minimum daily wage that is required by law, and that they also required mandatory overtime and provided no health insurance. In a startling accusation, the group also said that one company provides a single bathroom for 2,000 employees. I hope it pays the janitor well!