Andrew Snyder says the temporary economic pain of allowing General Motors (NYSE:GM) to fail is better than propping up a lost cause with public money. He says its time to let GM go and allow the process of creative destruction to work freely.

The fate of the ‘Big Three’ still hangs in the balance as the government ponders a bailout. Andrew Snyder says auto dealerships are also at the mercy of their Detroit suppliers. He says a lot of things have to go right for most dealers to survive this crisis. That’s why bottom-fishing investors should look for well-diversified retailers like Wal-Mart (NYSE:WMT).

The US auto industry is coming apart at the seams, says Eric Roseman. The ‘Big Three’ are bleeding profusely, and face bankruptcy without a government rescue. If one of General Motors (NYSE:GM), Ford (NYSE:F) and Chrysler is allowed to fail, Eric says the stock market will crash through its 2002 lows. This means investors should stay underweight stocks for the time being.

Another stimulus check should be coming our way as the market keeps falling.

If it doesn’t happen as one of the final acts of the Bush administration, it will happen as one of the first acts of the Obama one.

The question is, will it help the fast-falling auto industry?

It’ll help retailers. The overwhelming evidence is that the last round of stimulus checks helped pick up consumer spending in the second and third quarters.

But big-ticket retailers like auto dealers play in another sandbox entirely. Unless these checks have a couple of more zero’s than the previous ones, the auto industry’s fate is tied to getting another $25-billion loan package from the government.

The auto industry needs it. And from Obama’s latest statements, it…

The ‘Big Three’ automakers in Detroit are begging for a government rescue. Adam Lass says these companies are just too risky to raise capital themselves. A bailout may be coming, but shareholders won’t be saved. That’s why Adam says investors should short GM (NYSE:GM) and Ford (NYSE:F).