LenD I disagree, the bonds would of (and should of) been paid off first. The pension funds and union contracts would have flown out the window and not been honored. If the bankruptcy had proceeded as per law we would still have a GM, and one that possibly might be healthier because it wouldn't be so heavily invested in failing green technology, like the Volt. And different people would be holding the stock (people with protected liens against the corporate assets of the former company). The way that the GM bankruptcy happened only some people had losses and it wasn't necessarily the ones who had protection under the law. Another hidden cost that hasn't been summarized yet is that a lot of the folks (GM management, Delphi Workers and GM bondholders) are still a little upset about the big hit they took when some of their co-workers came away unscathed. In a tight election this might very well be the difference between the incumbent and the challenger winning. As for the remarks about Ford- most of the reason Ford didn't go into bankruptcy is that in doing so the Ford family would lose control of the company, something they weren't willing to do. That and some of the assets that Ford bought during the booming 90's (Jaguar, Volvo, Mazda, Aston Martin and Land Rover) had more marketable value than GM Holdings (Saab, Hummer/AM General, Pontiac and Saturn)and GM was unwilling to allow some of its holdings (Saab)to go to the Chinese because they were afraid of loss of intellectual property to China. The Ford family was willing to bring in more cash to keep the company. Ford may very well be a big winner as a result of the crony capitalism of GM because if GM went through a normal and lawful bankruptcy and lose it's contractual obligations on pensions, wages and benefits Ford might not be in a position to compete with them. Another point I have heard argued is GM did have a plan to get through the pinch without a bankruptcy, something similar to what Ford did, but the administration wouldn't allow it because it didn't give the administration or the UAW control of GM or a reason to steal it from the bond and stockholders. The whole GM bankruptcy fiasco is no different than what the French government did to the Renault family after world war II- you have something we want give it to us or you'll be a war criminal and we'll take it from you anyway.
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