GM/Chrysler/Fiat confusion (fiasco)

Big news in the auto industry as Rick Waggoner was sacrificed (i mean reassigned) as the CEO of General Motors. The man took over as CEO 5 years ago and has worked hard to restructure the union contracts but apparently didn't work fast enough. Why is the government acting so inconsistently over and over again? They leave in place many of the big banking executives (even though they are trying their hardest to drive them away by threatening to tax their bonuses) yet force Waggoner to resign? They loan money to companies but don't want a spot on the board yet they want to make decisions as if they were. It's just very confusing to me.

Then there's Chrysler...a privately held company that has been run into the ground mostly because they don't make enough cars people want to buy. First off, i'm not sure why the government is even considering loaning them more money. Secondly, why is the government trying to arrange a deal with Fiat, an Italian company? If Chrysler thought it was a good idea, they would go ahead and do it! that's what happens in free markets.