US auto bailout: convertible deal

Bush’s Detroit bailout looks like a path to bankruptcy for General Motors and Chrysler. Billed as a way to give the two automakers breathing room, the deal actually imposes tough targets that must be hit in only three months. It’s likely they’ll fall short - and that would force them to file for Chapter 11 protection. But that’s not necessarily bad, if they use the time they’ve been given to cut deals with workers, creditors and others that they’ll need to get out of bankruptcy fast. The govern...