Long Time Coming

Here it comes, as it always does, the inevitable:

The U.S. Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by June 1, even though the automaker has publicly stated it could reorganize outside of court, The New York Times reported on Sunday.

GM is operating under emergency U.S. government loans. It has been told by the Obama administration’s task force overseeing its bailout that it must cut costs and reduce its debts in order to continue to receive aid.

Of course, GM could have gone C11 back in ’05 or ’06 when it was effectively bankrupt, but still had enough cash in the bank (or unmortgaged assets) to finance its own restructuring. Instead, taxpayers have sunk billions into GM — money we’ll almost certainly never get back — and it seems we’re on the hook for billions more.

Now watch as Cerberus gets ready to put the “new” Chrysler through the old Chapter 7 liquidation.

UPDATE: Another $70 billion of your money for GM?