Should we spare a dime for Detroit? Part 3

The first time around went poorly. Gettelfinger couldn't do much better. So now the Big Three are back. Last time they were given the homework assignment to come up with a plan to become viable. That seemed like a tall order to me. They've been struggling with such an assignment off and on for the last seven or eight years. What sort of brilliance was Congress expecting them to produce during this cram session?
Rick Wagoner has said that bankruptcy isn't an option. Congress is acting like the Jesuits in Portrait of the Artist as a Young Man. I think that Congress is going to give them the money they need and that this is theatrics. However, let's assume that all the options are on the table.

1. Bankruptcy: No one wants to push the red button. It symbolizes the abject failure of what was once a source of pride for this country. Despite the fact that it would probably allow the Big Three to get the necessary concessions from the UAW they need, no one knows just what it would mean cost-wise to the government. If you think that this is likely, then short the shares, the debts, their suppliers, and the Dow.

2. Bridge Loan to a Democratic Congress & President: This seems the most likely scenario to me. Again, the political fallout is too great for this not to happen. This is speculation pure and simple. Buy the common stock or LEAPS.

3. No Money, Big Problems: Let's say they get nothing,but still refuse to declare bankruptcy. This is highly unlikely, but since this is an academic exercise, let's think about it. Ford is the company best positioned to attempt such a far-fetched strategy as it has more cash. As in the bankruptcy scenario, short everything.