Could auto industry bankruptcies lead to higher mortgage rates?

That's the postion held by James Glassman, former under secretary of state during GWB's administration, presented in an op-ed in this weekend's NY Times:

Even if the courts were to reject the plans for G.M. and Chrysler, the administration’s actions in trying to force the deals may damage the credit markets for years to come. The treatment of the bondholders is a warning to investors that the federal government won’t hesitate to push them aside in a crisis.

Perhaps it’s no coincidence that in the wake of the Chrysler deal we have seen a decline in prices for long-term Treasury bonds and a sinking dollar. The Chinese, for example, could view things this way: If the United States is willing to skirt the law to help some of the president’s closest political supporters gain large pieces of two of the world’s biggest companies, will Washington necessarily stand behind any Treasury securities we own when it becomes politically inexpedient?

I don't put too much weight into the thoughts of former Bush administration officials, but I blockquote, you decide. Comments welcome, as usual.

SOURCE: NY TIMES