A Managed Bankruptcy?

As we wait another day to see if there is going to be a deal between the White House and two US automakers, an interesting idea was put up front and center by the Bush Administration.

We've all heard the Big Three US automakers say there is no way they would consider going into bankruptcy, because it would ruin the entire US industry they argue.

Well, there was the White House talking very publicly about a "managed" bankruptcy.  And it wasn't just the President's spokeswoman doing that at a briefing as she kept repeating that anything was better than a "disorderly" bankruptcy.

"I would just say that we want a robust auto industry in


, and we think that they can be competitive and viable, but they


re going to have to make tough decisions to get there," said Dana Perino.

In other words, the White House was again making clear to Detroit that General Motors and Chrysler aren't going to get billions in emergency aid without making some big changes.

And the same goes for the UAW too.

Last night, the reaction was as expected from those quarters, that no bankruptcy, whether pre-packaged or not was acceptable.

This from an industry where no cars are going to be made for just about a month because so few of them are selling.

I'm not so sure this is going to get wrapped up all nice and tidy before Christmas.  Stay tuned.