Chrysler - BK or Not?

The interesting question here is why is there such a difference in the media over the reports of what is happening at Chrysler? A few days ago there was a report on Fox News that Chrysler was preparing for bankruptcy. Yesterday NBC reported that the automaker was completing the deal with Fiat and all the pieces were in place to save the company. Today, Fox News reports that the deal fell apart due to lenders not agreeing to the payback terms.

What is going on? Is the company good to continue or not? The union has agreed to terms, CitiCorp has agreed to the debt repayment terms, but the hedge funds apparently cannot come to grips with it. The terms of Fiat partnering are accepted and show significant benefits to the consumers and the company itself. The hangup is still investors thinking they can make some absurd kind of profit while everyone else has signed off on losses that will save the jobs and the company? Ridiculous.

If Chrysler goes to bankruptcy, which I suggested was inevitable months ago, the government will take majority control of the board of the company by hand picking the board members and defining the terms of repayment. Just like the government is becoming the majority stakeholder in the banking industry. Just like the government is pushing to gain central control over the health care industry.

Hmmm...does anyone else see the similarities here to socialism as seen before in China and the USSR?