I’m shocked.  I’m not sure why, exactly, but I am.

GM to sell healthy assets to a Government run company, bad assets will go into bankruptcy.

General Motors Corp’s (GM.N) plan for a bankruptcy filing involves a quick sale of the company’s healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The government’s plans include giving stakes in the new company to GM’s union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company’s plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

This is – for me – this is exactly what everyone was saying would happen to the banks: nationalization.  I believe this is a poor move and sets the standard for everything moving forward.

Just simply let them go under!

Related posts:

1. GM Said to Plan June 1 Bankruptcy
2. WSJ: CIT to declare bankruptcy Sunday / Monday
3. Visteon files for Chapter 11 bankruptcy protection
4. GM board has concluded bankruptcy not an option
5. GMAC to become a bank, the Fed continues to work with their head up their collective asses.