I should not be too pessimistic about UK bail-out

In recent posts I might have been overly acerbic about the non-elected Lords and Ladies, who are leading the bailout of the British economy and its banks by
HM Government. On reflection I would have to say Lord Myners, Lord Turner and Baroness Vadera know what the problems are and are working hard to resolve them. However, I must admit that I have changed my mind about the UK Chancellor Alistair Darling. Originally, I thought he was just a stooge of Prime Minister Gordon Brown but he has worked hard on the rescue packages. Apparently, Darling has earned a grudging respect from the business sector.
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I also thought for a long time that Bank of England governor Mervyn King should have been sacked. Crimes include being an Aston Villa fan and letting Gordon Brown cronies infiltrate the monetary policy committee. However, King has eschewed the normal delphic comments of central bankers and has said it as it is. He warned about possible bank nationalisation, which has virtually happened at the Royal Bank of Scotland (RBS). He also exercised the power, rarely exercised, of central bankers to talk down the currency. Probably, this was useful in terms of reviving the economy, since it will take time to produce effects.

Am I just being hysterical over national bankruptcy?

Today Lord Mandelson is saving the foreign-owned car industry in the United Kingdom.
Long-term the car industry would always relocate to where the customers are and that is basically China and the Far East. Unfortunately, you don't want the industry to relocate now given its ability to create direct and indirect jobs. I am sure Tata would prefer to make Jaguars in India and that was the original plan behind the acquisition of the UK manufacturer from U.S auto group Ford.
So am I just being hysterical over Albion going bankrupt, if long-term the country is not going to have a car industry with all of its exports and R&D?
I read a brilliant article by Roger Bootle in the Daily Telegraph rebutting UK bankruptcy but if you read economic commentators around the world they are arguing that major economic shifts are happening. For instance, Western living standards are going to decline and savings rates will return to normal levels, even in the United States. Things are serious when President Obama's Treasury Secretary is unpleasant to China about exchange rates.
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I suppose Lord Mandelson, Lord Myners, Lady Vadera and Lord Turner are working hard to prevent UK bankruptcy. However,we are all hostage to how long the recession will last. Chancellor Alistair Darling has predicted a recovery in the second half of 2009 but if the recession lasts for longer then the pound could take some serious damage. I know it sounds suicidal but I would increase taxes now, which would ease the pain later on. This might lift sterling but to expect a manufacturing renaissance on lower exchange rates is just a delusion. I would try and encourage the retail buying of UK government bonds and gilts.