There are very many practical reasons bankruptcy is not an option for the American automakers, which are explained quite well here: http://www.amconmag.com/blog/2008/12/01/save-detroit-bankruptcy-now-would-do-incredible-damage/#more-1314
Of course, most people hyperventilating at the thought of a loan to the American automakers—a loan that, even if never repaid, will cost a tiny fraction of the 7 trillion dollars the Treasury Department and the Fed have thrown at the financial sector—aren’t interested in facts.
2) Where do we draw a line on this garbage? Can you name a major industry that wouldn't require a bailout int he national interest under the criterion your link proposes? Next it's steel, then pharmacueticals, then trucking, then shipping....
No one has any obligation to conduct business in an intelligent manner. They are all “too big to fail.”
3) Nobody in Detroit couldn't have seen this coming. These people have known for years they were failing and they knew exactly why. Did they bother trying to fix it? Nope. They all relied on the “too big to fail” magic label to avoid having to assume any professional responsibility.