Now you might be thinking: What?! Why wouldn't we bailout the companies and avoid the mess and havoc that could ensue?
Well, I'll tell you. Capitalists, Republicans, and the like fervently support deregulation and laissez faire. Since Republicans are currently in power(via Pr. Bush) we let them have what they want. After all, we see what government deregulation has done to the economy (Wall Street failure, inventment bank failure, mortgage crisis, and now the auto industry failure). Those in power, that is, the people in charge of the Big 3 and the banks and the big wigs on Wall Street didn't want governement meddling in their business. Then, as soon as they fail, they can't get enough government! They want to fill up their glasses with government and pass it around and get drunk off of it.
Essentially, the business didn't heed the signs of the times, they got rich on greed, and now they're feeling the hurt. We let them learn from their mistakes like a good parent would do. We don't abandon them, turning our backs. We say, "There are consequences for you actions, and you can't avoid that." Then, when the layoffs begin and the economic malestrom takes place, we help those in need. We help the auto workers who need to support their families. We help the the residual business owners that failed as a result of the auto industry failure. How do we do this? We begin with severance packages. We make sure that each laid off worker gets one. Then, we help them find jobs by using this countries need for green energy. We say to the auto companies, "We need parts to create wind turbines, solar panels, and hydroelectric generators. Let's make a contract so we can get this done together."
I would assume that these companies wouldn't say no. So right away, there's a little bit of job creation. When the parts get made, we need more people to go out and construct these generators, meaning more job creation. The greener, cleaner, and hence cheaper energy lowers costs for home, saving people money. It may even lower the cost for natural gas, opening the door for the Pickens Plan.
This is the type of bailout our country needs. This is a proactive solution. Let's focus on progress rather than letting a screaming, whiny, naughty child suddenly realize he's in huge trouble so he behaves for a few minutes to make his parents' think he deserves a reward.