Other arguments are on the table as well. Some see the troubles at GM and Ford as opportunities to retool the auto industry to produce environmentally friendly cars. Given their long track records of lobbying against fuel economy standards and producing oversized gas guzzlers, this suggestion seems ridiculous, sort of like asking cigarette companies to help with cancer research.
I'm generally in the 'let-them-fail' camp (whether one is talking about car companies or surly 10-year-olds... tough love and such). But Krugman doesn't see it that way, which gives me pause.
Obama was on 60 Minutes last night and was really good. He's got a dorkish sense of humor, which I like. He didn't give major specifics on the auto industry bailout, but he seems to be in a tough position. It would improper for him to totally start acting like president now, but at the same time, not offering proposals makes it seem like he doesn't know what to do. He did quite clearly state that pretty much the first thing he'll do is sign an Executive Order closing Gitmo and banning torture.
This story in the Washington Post was heartening, as I'd like to see government agencies (especially the EPA) be able to do its job again.