Indeed, the auto industry is a complete wreck. Its strategy of building gas guzzling, but high margin trucks and sport utility vehicles failed to consider that rising oil prices may negatively impact demand.

In addition, the industry became drunk on easy financing including zero down leases for customers regardless of credit. Sales were artificially high as a result of readily available credit.

That credit evaporated with the freeze in financial markets. Product inventory combined with fewer consumers and an inability to finance purchases crushed sales. The automakers saw volume decline by 30% or more in the month of October alone.

The industry was not all that healthy to begin with. Already struggling with legacy costs, and union battles, Detroit could hardly afford a huge decrease in sales.

Balance sheets laden with debt required cash flow. Without as much cash, the reality of bankruptcy became very real. Should weak conditions last long, auto makers as we know them today would be non-existent.

If you listen to management and politicians such an end result would be disastrous. The auto industry is critical to the nation's economy or so the argument goes.

Give us money or give us death!

Hold on there tiger. Indeed the auto industry is important to the health of the economy, but a Chrysler style bailout spearheaded by government loans would be the wrong way to go in this situation.