the "rub" in this situation...
appears much more complex than we are likely in position to fully appreciate. Project no bail-out provided by Congress. First GM, then Ford and Chrysler file bankruptcy....Chapter 11 to "reorganize", or Chapter 7 and liquidate....either way, considerable pressure brought to bear on suppliers, dealerships, etc. Inevitably leading to more bankruptcies, amongst those groups?
In addition to supply pressure (insurmountable?) that would present to remaining automotive production, what of the "lost" tax income to various taxing entities (Fed, state, local)? If Chapter 7, does anyone doubt enormous load to befall the Pension Benefit Guaranty Corp (by most accounts, already hugely underfunded vs. liabilities) ?
As one who values "pragmatism" over philosophical(or political) posturing, it certainly appears we face a "pay me now, or pay me later" dilemna, the "trick" being to determine which approach is most likely to LEAST negatively impact "us" (viewed as a "whole"). Personally, I don't give a damn about GM, etc(perhaps they simply deserve the "fruits of their labor")....EXCEPT, I do not have desire to "cut my own nose off", whilst spiting them. L.
Related link: http://www.businessweek.com/autos/autobeat/archives/2008/11/15-20_billion_l.html