There is a sense of déjà vu about Detroit. In the summer of 1979, Chrysler, having staked its business on gas-guzzling cars, was in deep trouble and angling for a government bail-out. Today, Chrysler finds itself in the same tough spot, but this time it has been joined by General Motors and Ford.

Three decades ago, Chrysler received $1.5bn in loan guarantees. The conditions attached were harsh. Jobs were cut and creditors suffered. With hindsight, the bail-out may have been a mistake and bankruptcy a better option. Today, however, there should be no doubt that a second bail-out would be wrong.