He argues that the best thing we can do is not bailout these companies, but rather let them declare bankruptcy.
Bankruptcy does not mean the company disappears; it is just owned by someone new (as has occurred with several airlines). Bankruptcy punishes those who took excessive risks while preserving those aspects of a businesses that remain profitable.
Now I'm not saying that we should follow Libertarian economic principles, but rather here is a Libertarian who is making a good argument for returning to the earlier economic regulations while allowing the market to punish those who screwed up in the hopes that they won't do it again.
The Rational Moderate