Toyota and Honda sales are down more than Ford or Chrysler sales, though not quite as much as GM's. Within a few months, Toyota and Honda will be needing a bailout, and you can bet the Japanese government will give them whatever they need. The same is true for the Korean companies and all the Europeans.

The auto companies always have to be highly leveraged yo make a profit. That means they either make a lot of money or lose a lot of money. Usually they borrow more during a recession. But this recession is also a credit crunch, so they can't borrow money. The government is the only one who has the money they need to keep operating.

I think we better give it to them, or we're going to start a depression that won't stop for a very long time. Of course we need to put some very strict restrictions and concessions on the loans, so we don't have a repeat of the bailout debacle with AIG and the other finance companies.

I think the new administration is likely to handle bailouts a lot better than the lame ducks did.