The auto industry situation poses an interesting dilemma. From one side, bailing out these companies runs contrary to the capitalist spirit. Although the product lines from the US auto industry is improving drastically, for too long their products have been second-rate. It is a shame given that the auto industry originated in the US. Factor in poor management and over expansion, these companies were bound to fail. From this perspective, they do not deserve a bail out.
However, there is another side to this matter. There are thousands of people working for these companies that risk losing there jobs given that their company goes under. Not only will their livelihoods be destroyed, the ripple effect it would cause would be catastrophic. Entire communities would be wiped out.
What it comes down to is what you find more important to support.. "Survival of the fittest on an economic scale", or, "Survival of the individual on the personal scale". If we do end up bailing out these companies, I believe it will have very little to do with saving the companies and more to do with saving the people that they employ (excluding upper management), and the industries which depend on them.