The New York Times reports that President Bush is leaning toward a prepackaged, “managed” bankruptcy for GM and Chrysler. It’s the approach I support, and liberal blogger Kevin Drum writes that he is “tentatively in favor of this approach” as well:
It actually sounds like a decent compromise to me: it keeps the companies from imploding in the middle of a huge recession, but at the same time it gives a bankruptcy court considerable leeway to impose serious restructuring of the kind that a political process probably can’t.
Exactly. Of course, this compromise wouldn’t have been possible if those much-maligned Republican senators hadn’t blocked the Democrats’ blank check for the industry. If the prepackaged-bankruptcy plan succeeds, I doubt they will get as much credit as they deserve.