I'll confine my response to the auto industry debate. If all that's being considered is giving the auto companies the "bridge loan" that they're requesting, that would be like peeing down the rat hole. Back when I was a commercial banker we would occasionally see requests like this. We were never so blunt with the customer, but when we discussed the request we'd almost always conclude that the loan would be a "bridge to eventual insolvency". That's all lending money with no strings to the auto companies would be. Look at what's happening to the banks to whom we've given tens of billions of dollars. They're still not making loans. That's because the Treasury Department attached no particular requirements to their "investments".

In the case of the auto companies, I'd give them money. But only if some combination of--or all of the following conditions were attached. Some of these might be things that the managements and the UAW would have to agree to jointly, if they really wanted and needed the money. They'd have to decide which was worse, the following conditions or the result if they received no money...

• A dramatic cut in employee and retiree pension and healthcare benefits.

• A substantial cut in hourly wages.

• A substantial cut in management salaries--at least as much in percentage terms as the union workers.

• A prohibition in any management incentive compensation until certain conditions were met. Like a couple of years of profitabliity; higher fleet CAFE averages; progress towards more non-gas cars, etc.

• Agreement that any future union contracts obtain not only management and union approval, but also the approval of the government.

• A requirement that the management be required to make quarterly reports to the government and that the government would have final approval of capital spending plans, future product planning, and overall expense budgets.

If they want the money, then everyone involved should be required to pay a hefty price--just like the price the taxpayers would pay in order to make the loans.

Like I said, a bridge loan without conditions would be like peeing down a rat hole.