After Spending Billions In Bailouts, Bankruptcy Leads Possible Plans For GM, Chrysler

The Wall Street Journal reports "the Obama's administration's leading plan to fix General Motors Corp. and Chrysler LLC would use bankruptcy filings to purge the ailing companies of their biggest problems, including bondholder debt and retiree health-care costs, according to people familiar with the matter. The move would in essence split both companies into their 'good' and 'bad' components. The government would like to see the 'good' GM to be a standalone company, according to an administration official. The 'good' Chrysler would be sold to Fiat SpA, assuming that deal is completed, this person said. GM and Chrysler have had bankruptcy attorneys devising plans for such a move in recent months."

So after the government spends billions on bailouts for the auto industry that have no effect, the plan the government comes up with now for the auto companies is declaring bankruptcy. If so much taxpayer money had not been wasted this would be laughable.
Tweet