Big 3 Bankruptcy

Bankruptcy law professor, Todd Zwicki, explains that Chapter 11 is a very good option for Detroit here. Unfotunately, Congress (and, for some unknown reason, the Bush White House) is unlikely to let it happen because:

Washington politicians who repeat the mantra that "bankruptcy is not an option" probably do so because they want to use free taxpayer money to bribe Detroit into manufacturing the green cars favored by Nancy Pelosi and Harry Reid, rather than those cars American consumers want to buy. A Chapter 11 filing would remove these politicians' leverage, thus explaining their desperation to avoid a bankruptcy.