B for Bailout or Blank cheque ?

After all the noise about the bailout of the Wall street, now its the turn of others to request there share of the bailout package. Among the top of the lot is the Detroit auto industry.

At one end people argue that government should not get too involved in the way a free market works and allow it to correct itself. They feel this approach will move US to more socialistic market. At the other end if the government does not get involved then its not just these specific industries but due to its enormity , the common people at the end of the node who will finally be the losers. Its desperate times and we need desperate measures. However, this situation should not be the reason for give the failing industries a blank cheque without anything in return.

People who argue in favour of blank cheque and who fear a socialistic government should understand that the lack of proper governing was the root cause for all this problem. I agree too much of government intervention will stifle the free market, even the lack of it bad as proved with the recent events.  Alan Greenspan, the architect of US Economy too agreed with it. As logical as it sounds, when you lend money you make sure that the person who borrows has the capacity to return and return it back in the specified time. The same should be true when you are investing billions of tax payers money in industries, which by current events have shown there failed self regulation record.    

When you betray peoples confidence, its your responsibility to regain it back not the other way round. As i earlier said "Desperate times need desperate measures". So regulation is the way to go as of now.