If you own General Motors ( GM) shares or are thinking about buying the stock, consider this your second warning.

Shareholders are the least of the Obama Administration's concerns as it pushes GM into bankruptcy.

With today's report that the Treasury Department directed GM to prepare for a bankruptcy filing by June 1, it's looking more and more like a fait accompli.

Basically, GM now has less than two months to prove it can restructure without the power of court protection to force unions to accept concessions and press bondholders and creditors to accept new terms. Unions and bondholders are in the drivers seats for this game of chicken.

Unions will need to accept deep job cuts and reductions in pay and benefits, especially health care and pension perks. Bondholders will need to be willing to swap debt for shares.

So current stockholders will feel the pain either way. In bankruptcy, shareholders are among the last in line for protection. In the debt-for-equity swap, shareholders face massive dilution of their holdings and share value.

Of course at this point, GM stock is only worth $2 and change, so there's not much value left there anyway.

Shares of Ford ( F), which chose to forego government bailout money and all the strings attached, have been gaining lately and are up to $4.24.

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