Felix Salmon makes a convincing case for why we want to prop up Detroit, but not, as we're basically considering, nationalize it. You don't want the auto industry to collapse when the economy is teetering on the brink of a terrific recession. But you may not want to invest so much in the industry that you find yourself unable to let it fail later, when its fortunes would have less impact on the broader economy. And if the government essentially declares itself responsible for Detroit's success, that becomes a much likelier scenario.
