The problem with a "loan with conditions" is that when the government is the banker, no one ever lives up to the conditions. There is little to no REAL oversight, and it's always a give me the money first, and we'll llive up to the conditions later (maybe).

Let's not kid ourselves. There is no federal agency which can provide such oversight over the auto industry. Congress will never do it via a special committee. As "K" said, its....down the rat hole.

Once the money is transferred, everyone's memory seems to get fuzzy, especially Congress and definitely the controller for the outfit with the freebie.

Neither the executives for the auto companies nor the unions want a Chapter 11 bankruptcy, because the court will provide oversight and will make both sides chew a little of the bitter pill. Since both sides in the auto industry labor-management "team" have mutually inclusive blame to share, they should share the stomach ache that goes with it. A bailout leaves them still eating cake while the taxpayer will require gallons of Maalox for quite a while.