Should the US government bailout the BIG Three?

Well it seems imminent that the US Government under Bush, or by January under Obama will definitely take steps to 'bailout' GM, Ford and Chrysler with a paltry $25 Billion and perhaps some other packages from the $700 Billion budgeted bailout for plenty of other financial institutions. The argument is still there, with those insiders siding automakers trying to convince outsiders how important it is to save these three behemoths as they pose a 'serious' threat to the US economy should they came shutting down; and we do know there's roughly around 7 million people involved directly or indirectly with the whole chain of industry supplying or relying on the US domestic automotive industry.

However, let's take a step back and look at the situation here. There is a fundamental difference between the likes of GM, Ford and Chrysler compared to the likes of Lehman Brothers, AIG or Fannie Mae. The latter are well established players in the industry with products and services that generates healthy income for their customers, or in short, they have customers that either are willing to use their services, enjoy their services, and preferred their services. Meaning the bailout would be a temporary means to stop these companies from doing a gold fish upside down act would be enough for them to continue serving their customers and preventing a major meltdown of Wall Street.

However when we look at the former, GM, Ford and Chrysler, the problem is simple here: They just can't offer products that US consumers want. Or to put it simple, they will still gradually fall into the shit hole, even if they have a pile of cash readily available. Hence even if they receive any form of financial aid, it would still not be enough for them to revamp their production line, model lineups and relinquish their brand reputation. Their products will still be left rotting in dealer yards. The major shift in US consumer buying habits had forced those who can't keep up to be 'expelled' from the industry. The same case as Alfa Romeo's earlier withdrawal from the US market when their cars simple can no longer sell.

Now does that mean we should just let them die their natural death and leave hundreds of thousands jobless? Nope, imagine if GM, Ford and Chrysler suddenly collapse, the 11 million car sales per year market will suddenly have a big tasty piece of pie up for grabs for other automakers. Plants will still get setup, cars will still be made and sold, workers and suppliers will still be hired or given their orders, albeit not their usual customers anymore. They'll deserve their bailout if, like those from Wall Streets, they still have millions of customers lining up willing to buy their products.

Moreover, bailouts are ILLEGAL in World Trade Organization's laws.