Should the US bailout the big three automakers?

[Bartruff1]

Originally Posted by Tom Kirkham

If the Big 3 and the Financial Institutions are too big to let fail, then:
1. Why did the Government let them get so big?
2. If a company is "too big to fail," why aren't they being broken up?
3. Why is the Government letting them get bigger (Bank of America merging with Merrill Lynch, GM in merger talks with Chrysler)?
4. What other companies are "too big to fail" (probably Lockheed, and Boeing)?
5. Is "too big to fail" really "too big to save"?

The financial inst got to big to fail because of a lack if regulation, your regional bank is not failing because they are for the most part regulated by the states. The investment banks were allowed to leverage at 40 or even at 100 to 1. The US has the 41st most stable banking system in the world, behind Namibia !! Canada, the most regulated, is the most stable. There are other reason's ...short selling, loss of the up tick rule, hedge funds, etc...but in the end, a lack of regulation. The Auto's got that big because of competition, at one time there were more than 100 automakers (just like snowmobile makers ect) and the weaker ones were allowed to fail. Yes, they have made mistakes, the same mistakes they were making when they were selling 17 million cars a year. Now because of the lack of credit and the previous high cost of gas they are in a bind and are selling 10 million. It would be foolish to let them fail, I just hope they give them a large enough loan so that the Gov of Mich. can get that fricken pimple or whatever it is off her cheek !!