Here's what has to happen. Cerebus needs to sell Chrysler to somebody with cash and a need for access to the US market. India's Tata comes to mind.GM and Ford should be allowed to go through bankrupt reorganizations. Yes, there will be huge transaction costs. Yes, some of those costs will be borne by the taxpayers. The bankruptcy court's ability to remake contracts, however, will be critical. GM and Ford need to tear up their contracts with the unions, its retirees, and its dealers.