US Government May Force GM, Chrysler into Bankruptcy to Protect US Debt!

What a mess!!! Why did the government even get involved in the first place? The outcome will be the same - bankruptcy for bankrupt companies. The government has only managed to maximize economic disruption.

Feb. 9 (Bloomberg) -- General Motors Corp. and Chrysler LLC may have to be forced into bankruptcy by the U.S. government to assure repayment of $17.4 billion in federal bailout loans, a course of action the automakers claim would destroy them.

U.S. taxpayers currently take a backseat to prior creditors, including Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc., according to loan agreements posted on the U.S. Treasury’s Web site. The government has hired a law firm to help establish its place at the front of the line for repayment, two people involved in the work said last week.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a56N4uO0...