DIDN'T THEY USED TO MAKE CARS? - AT 8:23 A.M. ET:  From The New York Times:

The government may seek to ease General Motors into what it calls a “controlled” bankruptcy, somewhere between a prepackaged bankruptcy and court chaos, by persuading at least some creditors to agree to a plan that would cleave the company into two pieces, according to people briefed on the matter.

Instead of signing on every creditor as is typically required in prepackaged deals, administration officials are using as leverage the promise of taxpayer financing. Many regard the government as the only lender willing to step up with money — in bankruptcy or out.

“They’re going to have tremendous power,” said Lynn M. LoPucki, a law professor at the University of California, Los Angeles. “They can call off the money and the whole thing fails.”

COMMENT:  This is just chilling.  Say what you want about the management of GM, or any other corporation, but the idea that Washington knows more about manufacturing cars is laughable.  At some point this is going to hit Americans very hard.

April 1, 2009