This week, Whirlpool posted an operating loss in North America, its largest market, and said that it was in talks with banks regarding renewal of credit lines. Unfortunately, since its debt ratings have been slashed, the company may find itself facing tighter and more expensive credit.

If, just in case, the world's largest appliance maker ends up in deeper financial trouble, what help could it expect from the government? Presumably, Washington might grant it a bridge loan, similar to what the Big Three received, in order to protect jobs and its brands. Such aid to appliance makers wouldn't be the first among developed countries, as Italy is planning aid packages for the auto, auto parts and household appliance sectors.

Italy's intervention to the appliance industry will have a lot in common with China's, as the measures will include incentives for buyers worth about 300 million euros, as well as further tax breaks and financing.

At this point in time, the need for government intervention worldwide is indisputable; it's the intervention's effectiveness that remains the key issue. China's buyer subsidy program is generating strong sales for both Chinese and foreign manufacturers. The government estimates the amount averages US$22 billion annually. Chinese brand owners and retailers that are overwhelmed by demand are contracting business out to suppliers in places like Taiwan, spreading the surplus to other regions.

Here in America, Washington has taken limited measures to aid manufacturing. The format of government aid in general has also been limited to injecting cash instead of more transparent and effective ways of raising industry performance/sales.

Well, yes, we've seen the whirlwind of new green initiatives emanating from the Oval Office, including the president's order for higher energy efficiency standards. The White House said the standards should deliver energy savings of $500 billion for consumers. How wonderful, if only the government can make sure consumers are able and willing to afford new appliances. A $600 washer that can save you $60 a year in utility bills sounds attractive, but it's all pointless if the consumer can't fork out $600 to buy the machine.

Washington should focus its nearly trillion dollar stimulus package more on the buyer/consumer end by tying the incentive to actual sales transaction, which can directly stimulate the seller/manufacturer end.

Last but not the least, the manufacturing industry, including brand owners and parts makers, deserves more benefit from the government aid packages. Like I always say, this nation will not sustain itself by diminishing manufacturing.