In my opinion there should be zero dollars provided to Detroit unless huge benefits accrue to the taxpayer. I'm not talking about a paltry interest rate or simply being paid back on the loans.

Instead, the only bailout that should occur here is one whereby current equity holders are wiped out replaced by the United States of America. Hey if we are opening the doors to socialism, let's just go all the way.

In addition, funding should be provided as long as Detroit becomes a vested partner in our move away from fossil fuels. If that means sales are fewer in the short term, so be it. I want to see a viable alternative energy solution here.

That might require the government to provide investment beyond Detroit for things like infrastructure for a hydrogen powered vehicle. Don't just think of this as a bailout of Detroit, think of this as part of a comprehensive alternative energy plan.

Heck we may even get the funding for this with an oil company windfall profits tax.

A bailout of Detroit needs to be part of a very comprehensive plan. Simply throwing dollars at Detroit in the form of a loan would be disastrous in my opinion. Management at the automakers is what caused this problem and rewarding them with a bailout would be wrong.

Bringing the government in as a partner would result in real change and real results. Everything should be on the table.

Whatever course the government takes should result in a complete loss of equity at both General Motors (GM) and Ford (F). I would avoid these stocks irrespective of any government intervention.

This article was written by Jamie Dlugosch, contributor to InvestorPlace.com. For more actionable insight like this, go to: www.InvestorPlace.com.