U.S. Government Ends Chrysler Investment With $1.3 Billion Loss

It was thought that jobs would be lost if the Big Three folded. For that reason, and that alone, bailouts were made by the BUSH administration. With all the jobs that have been outsourced to other nations, the concern was probably valid--your "new wealth" might have wound up in other countries, not the U.S.

I would also like to point out that lack of a reasonable energy policy did much to lull Detroit into thinking (as they did in the 1970's) that CAFE standards would enable them to continue producing guzzlers.

IMHO, Detroit has failed to learn from past mistakes......but that's equally true of the rest of the nation as well when it comes to energy consumption.

I disagree that CAFE standards "had nothing to do with it". Detroit made big bucks by manipulating and demanding exclusions to higher MPG requirements. They gave lipservice ONLY to more fuel efficient vehicles. 1970's deja vu all over again. When gas prices rose and drivers started looking for better energy choices, Detroit had virtually nothing to offer. And they did not foresee the belt-tightening which would make upscale and gas guzzling marques vulnerable; and basically affected new vehicle purchases by delaying many would-be customers.

I also disagree that conservation is "a waste of resources". In fact, it's the exact opposite--a call to use the resources currently in place with far more care and thought than we have done in the past. Relying on either fossil fuels (finite) or nuclear power (still dirty for thousands of years) is singularly short-sighted.

I believe a combination of conservation (which will necessarily involve ditching reliance on cheap oil) and development of renewable energy sources can be far more promising than many think.

BTW, I went to the Intersolar Conference in San Francisco earlier in the month and was able to see that there are plenty of innovators and products. They've come a long way since being nearly suffocated by status quo Big Oil.