This Heritage Foundation blog succinctly makes the case against bailing out GM. Since I wouldn't be able to say it better myself, I thought I'd simply provide the link:
http://blog.heritage.org/2008/11/20/morning-bell-the-perpetual-bailout-machine/
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people. -- The United States Constitution, Amendment X
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