You fail at math, economics and politics. Lending is capitalism. That's the capitalists job, not the gov't. The capitalist has a choice, if he doesn't think it's in his interest he can say no. The gov't takes money from us, by force, to loan to private business is called socialism.
If GM can't figure out how to make a better car for less money than toyota, then they sould fail. That's free market. Toyota did it, they shoud reap the benifits, not have to compete against the US gov't for financing. That's not free market. That's socialist market manipulation.
Your arguing for socialism. Your a commie. Go to russia and china and see how well those policies have worked for you.