So everyone was outraged when the government bailed out General Motors.  Now everyone (OK, maybe a slightly different set of people) seems to be outraged that it looks like General Motors may go into bankruptcy.  I guess someone will always be unhappy.  The fact is that a viable General Motors won't happen without a lot of pain - and I think a bankruptcy might be the only thing that can save them.  They need a fundamentally different business model to succeed in the future, and I believe only bankruptcy can allow them to get there. 

If you're wondering what the difference is between the automobile industry and the banks, read this post from James Surowiecki.