The problem, as they say, is that Chrysler's assets are all tied up in debts, and the last thing GM needs is more borrowing on its pathetic balance sheet. Chrysler owns valuable assets, such as its Jeep and minivan businesses. But it also has at least $9 billion of debt -- I say "at least" because $9 billion of loans have been publicly identified, but there may be more debts that we don't know about. Cerberus won't disclose Chrysler's balance sheet.

Cerberus, which got its controlling stake in Chrysler two years ago in return for investing $7.4 billion in the company, has shrewdly been trying to salvage something for its investors by whipping up a bidding war (or the illusion of one), pitting GM, Nissan, and who knows who else against one another.