Detroit's only hope now is a government bailout. - Inspired by the potential GM-Chrystler merger

The outlook for Detroit looks gloomy. Racing towards bankruptcy, the Big Three domestic motor companies are scrambling for solutions. GM, for one, is hoping that the acquisition of Chrysler will solve its cash-flow deficiencies. (Chrysler reportedly has $11 billion in assets). Yet, it seems that even prospective mergers will be unlikely without government assistance -- Detroit simply doesn't have the cash to save itself.

On Wednesday, Michigan's Congressional delegation demanded that Congress step in to provide Detroit automakers with some kind of prescriptive financial bailout, according to John Stoll of The Wall Street Journal. In the case of GM, from all accounts it seems likely that the former Detroit giant will receive that much-needed booster shot from Congress to facilitate a merger, making a government-funded bailout the likely end-result of many of Detroit's problems.

And Congress is reportedly considering an intervention with less griping and paper-pushing than usual, because it is believed that Detroit is close to the tipping point. If one of the companies files bankruptcy, the other two will not be far behind. And that would mean that the government would be forced to take on the pension costs for Detroit's hundreds of thousands of retirees and spouses. "If [Detroit] needs support to make some kind of a merger between Chrysler and another auto company happen, we clearly ought to do that," said Senator Carl Levin of Michigan, "No other country in the world would stand by and watch major corporations go under this way without trying to do something about it."