Bankruptcy likely part of Big Three bailout?

It’s the only way Washington can get a guaranteed deal to force bondholders to take less than 100 cents on the dollar, for one thing.

Other benefits, especially of a prepackaged bankruptcy?

1. It would likely cost less money to We the People.

2. It would be easier to structure things such as dumping two brands by GM.

3. Related to No. 2, it’s the easiest way of working around protectionist state laws that make it hard for automakers to close dealers.

Folks like GM’s Rick Waggoner have to say “bankruptcy is not in our plans” for public, i.e. stockholder, consumption, until details of a pre-packaged bankruptcy are ironed out. But, it’s the way to go.

And, using confidential sources, Reuters reports GM and Chrysler will accept some sort of bankruptcy filing as part of the price of doing business with Congress.