The auto executives and the union leadership have an arrogance that makes me believe, based on the timing and the stubbornness, that electioneering trades were made - campaign contributions and votes for a downstream bailout. The attitudes are too smug for it to be anything else, and the reluctance to seek debt relief and restructuring is illogical. The Big 3 did not get into this mess overnight, and the last 3 quarters were flops financially, and the stock price has been going downhill even longer.

As far as buying a car from a company in Chapter 11, I don't think that will make a difference. Car manufacturers are probably getting parts from some suppliers in Chapter 11 right now, and Chapter 11 would mean the company has a better chance for survival than if things get worse and Chapter 11 loses its potential as an option. If things REALLY get worse, then Chapter 7 may become the only option, and all the government intervention via taxpayer charity won't help.

Here's hoping managerial common sense will finally rule, and they do the right thing instead of the quick thing that only puts short-term money into a select few pockets. Here's also hoping the back-side of the trades fall through...