I think you are missing the point. It’s not that a crappy car company is being taken over by a crappy government and a crappier car company, it’s that contract law and property rights have been dealt a serve blow. The bond holders first lien rights have been arbitrarily knocked down to a third rate status. If the gubment can do this to Chrysler and GM bond holders then NO corporate bonds are safe. If the bonds aren’t safe, then the companies aren’t safe and hence the stocks are worth less.
Ok, but all this has already been factored in by the market. This is not a surprise, the Dow is not going to crash tomorrow. HS and Nikkei are both up bigtime.