No bailout. Force them to undergo meaningful change. Thats the purpose of filing chapter 11.
Gov oversight is bad in the long run.
Yes. Nature (the free market) has to do her job. No bailouts is the only solution to this snowball.
Some companies will go bankrupt. More efficient companies will grow. Industries will shrink, die, grow, and be created in time. In the process, jobs will shift from one industry to another. Industries will undergo a revolution and efficiency necessities will adopt a new face.
Ultimately, the choice is 1) suffer long-term or 2) suffer short-term.
If you picked 1) suffer long-term, bail companies out.
If you picked 2) suffer short term, let companies go under.
It is natural for industries to evolve in time and that means some people won't like the change. But, it is necessary, good, and ultimately increases the real wealth (purchasing power) of the members of the population. The problem is that people don't have the mental capacity to understand the actual and inevitable nature of an economy from a macro ("big-picture") perspective. Yes, even congress. Yes, even our president. Yes, even us.