Most people seem to agree that none of the U.S.-based automakers deserves to be saved. But many argue that letting them fail would deepen the recession and cause a chain reaction that would bankrupt their suppliers and the entire car-related industry. The bulk of the jobs estimated to be lost from the failure of the big three (up to three million) would come from these suppliers, who also happen to make parts for other carmakers with plants in the United States (Toyota, Honda, Nissan, BMW, and many others).
So why not bailout just the suppliers? It would be cheaper, it would limit the fallout and the job losses and would not reward the lack of vision and poor management we have seen from GM, Ford and Chrysler. And I bet not all three would fail, leaving the remaining one or two in a stronger position.
