Yves Smith is wary of the auto plan:
...the notion of a "quick and surgical" bankruptcy for GM, and probably Chrysler too, is a fantasy. GM would be the most complicated bankruptcy ever. It simply isn't amenable to a prepack or a fast track variant. In fact, some bankruptcy experts think a Chapter 11 restructuring simply isn't possible and a filing would morph in the courthouse into a liquidation. That in turn would take out many suppliers, and many of the foreign transplants too.
...this looks like Lehman redux. The powers that be are getting bailout pushback, and aren't willing to take any financial perps out, so by default it's Big Auto. And if they miscalculated, the consequences will be catastrophic. It won't simply be GM and Chrysler, but the parts makers, and the transplants will take hits due to the loss of suppliers. GM and Chrysler are not isolated players, but major components in a large ecosystem. There are no good answeres here, but the Administration does not appear to have thought this out (how many balls does Geithner have in the air, including the G20?). A miscalculation here would have major repercussions.