Well your right Ron, we can't go around bailing out every company that made bad decisions. With caps on the CEO bonuses I'm still wondering WHERE these guys are going to when they quit their jobs? I'm also wondering, WHY the heck are they so freakin' important to begin with?
Being as the major share holder is the US Gov, we clearly have a right to a say about how the business is being run. Whether those decisions by US Gov are good or bad as it relates to "running the business" could be debated. Don't want the Gov messing with your bonus structure? Easy solution, pay back the dam loan!
It's a good question, what WOULD happen if we let them go broke? With some companies it's more clear than others. Like GM itself, tied to so many other "little guys" and being such a large part of our economy, I think that was a "must do". GMAC, essentially a financing company with toxic loans could be lumped into the same category as many other financial institutions, banks, AIG, Wall Street in general.
It seem's careful consideration was made by an array of economist's, through two administrations, as to which ones to save and which ones to let go. Who eats who and who get's eaten.
It is imperative that the people "keep the heat on" to make sure those decision's are good ones.