GM = Government Motors

So now it is revealed that GM's bankruptcy plan calls for a quickie sale of its healthy assets to the government.

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 source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.
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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.

Maybe it's more than coincidence that team Obama rolled out new auto standards today. Regulating that only certain types of vehicles are permitted may be the only way to ensure a government run program (i.e. GM) is competitive. Think about it, is there any area where a government entity runs more efficiently and cost-effectively than a private one ??