Finally, some sense:
In his speech, Obama appeared to prepare the ground for bankruptcy, saying that a chapter 11 filing for either GM or Chrysler would "make it easier to clear away old debts weighing them down," and that it need not involve years of court procedures.
Yes, that´s the way to go and it has been all along.
Clear out the wreckage of the debts, the promises made and allow the assets to be employed productively. If they can´t be employed productively, then Chapter 7 beckons…..liquidation, not just bankruptcy.