There should be no government bailouts and no government taking equity in private firms.

It is illegitimate to compare a private investor taking equity with government taking equity, because a private investor obtains his funds by consensual and voluntary payments, and exposes his own assets in the risk, neither of which describes government.

One can only wonder at the primitive superstitious ignorance and credulity of the whole Keynesian mindset, which has been discredited both in theory and practice over and over and over again. If we start with the wrong theory, we'll end with the wrong conclusion, and Keynesianism is both.

If it were really true that government knew how to manage the economy, a) we wouldn't have got into this problem in the first place, and b) there would be no need for private property or human freedom: we could just vest total power in government, sit back, and hey presto: optimal allocation of resources and ideal society.

To understand why government bailouts will make the problem worse not better, see:
1.
Obamanomics will Fail
http://www.lewrockwell.com/rozeff/rozeff259.html

and
2.
Forced Lending Undermines the Economy
http://www.lewrockwell.com/rozeff/rozeff266.html

To understand why Keynes was so wrong, see here
http://mises.org/story/2492.

I wonder if "productivity" is the answer. I look at it from a farming perspective where the key to more profit is to produce more yield. The unfortunate side effect is that more product dilutes the overall price eventually and you're back to square one, but with higher costs.