Matthew Yglesias hits the nail on the head:
Under the circumstances, the outlook for Detroit’s embattled firms looks even worse. They’re not, in other words, one quick fix from viability — they’re the sick men of an industry that’s in big overall trouble. Simply put, much more capacity exists to make new cars than there is demand to buy new cars. Propping up failing manufacturers isn’t going to solve any broader economic problems.
Don’t tell the Congressional delegation from Michigan that.
