What happens when the government intervenes in the delicate (and harsh) bankruptcy process?We are beginning to find out. The federal government’s “structured” bailout of Chrysler has prevented the market from performing the job that only the market can perform: determine the actual value of the assets of the company.Professor Mark Roe writing in Forbes had this to say on May 13:The trouble is that with the bankruptcy set-up approved this week, no one can tell.  There's no real market check on the Treasury plan, just a pseudo-market test that won't fool any market player.  This pseudo-test, approved by the court last week, led Chrysler’s dissenting creditors to give up. In the test approved, outsiders can bid the deal away from Fiat and the U.S., but bidders can bid on only one deal -- the same UAW deal that the government negotiated before the bankruptcy.  The court agreed to Chrysler's and the Treasury's proposal that no one be allowed to...(Read Full Post)