Things are getting worse. The Bush administration -- hardly a bunch of eager interventionists -- had no choice; it couldn't save these companies with jawboning and bluster about a bazooka full of cash; it had to take them over.
Since in office the government has bailed out the airlines, is about to bail out the auto industry, and is in the process of propping up the entire financial system. Not sure how much more intervening is left to be done.