Cato unsurprisingly says "No!" and "Hell no!"
The UAW, Detroit, the Big Three, and of course Obama say "Yes" and whimper, whimper "please".
This article in The WSJ on how GM is trying to set the terms of the bailout really blew me away. Yes, it's a good negotiating strategy to ask for the moon, simply hoping for a pebble or two, but I was hoping for a bit more humility.
There aren't any good answers. Encourage moral hazard by bailing out an industry that will only need another bailout if the economy doesn't turn around quickly or watch millions of real people lose their jobs. I have the feeling that the public will only accept a bailout where the terms are so in favor of the government (similar to the first AIG bailout) that it'd be tempting for the car makers to just declare Chapter 11 (followed quickly by Chapter 7). Or Obama could just do whatever he wants to do and everyone will love it.