I was recently watching Star Wars with some of my kids.  I was struck by a particular line.  Sen. Amidala says  "So this is how democracy ends to thunderous applause".  It suddely hit me.  This is how capitalism ends - to the applause of people who are greatfull for the government essentially taking over the market.  Rather than let companies that have made poor decisions fail, Pres. George (don't tax but spend) Bush  and the (tax and spend) Congress are giving away nearly a trillion dollars.  (Yes, about $3,200 for every man, woman and child in the United States).  Will it help? 

The problem with government intervention is that it inhibits the very corrections that need to happen.  If you want the housing market to correct, let it go low enough that investors see the potential and start flooding in.  Likewise, the government giving a $17 Billion loan to the auto industry will not solve the long term problems.  On top of mismanagement, the big three automakers have legacy costs that are out of control.  GM spends 50% more per worker hour for U.S. production plants than does Toyota.  How to you compete unless you can bring your costs under control?  The Unions, however, are not up for making concessions.  Some people would rather kill the goose that lays the golden egg than get a smaller egg.

Just remember, all of these loans are from a Government that is more than $10 Trillion in debt.  The bankrupt saving the bankrupt  Thats about $120,000 of debt for a family of four.  Your debt and Mine to someday pay back.  How do think the economy will be when someone (ie. our children and grand children) has to pay for all of these poor decisions?