Transition: Bailing out the auto industry

Posted: Tuesday, November 11, 2008 9:22 AM by Mark Murray
Filed Under: White House

Per Obama’s transition office, the president-elect will lay a wreath in Chicago this morning to honor the nation’s fallen veterans. In addition, in DC, John Podesta, co-chair of the Obama-Biden transition team, will hold a pen and pad briefing to provide an update on the presidential transition.

Unlike the FDR-Hoover model, Obama apparently did ask Bush to intervene on one key economic decision: the auto industry. Bush wanted something in return: the Colombia free trade deal. "Bush indicated at the meeting that he might support some aid and a broader economic stimulus package if Mr. Obama and Congressional Democrats dropped their opposition to a free-trade agreement with Colombia, a measure for which Mr. Bush has long fought, people familiar with the discussion said. The Bush administration, which has presided over a major intervention in the financial industry, has balked at allowing the automakers to tap into the $700 billion bailout fund, despite warnings last week that General Motors might not survive the year. Mr. Obama and Congressional Democratic leaders say the bailout law authorizes the administration to extend assistance.”

"Obama took another significant step toward assuming power yesterday when President Bush greeted him at the White House, then gave Obama an extended, private briefing on the myriad of challenges awaiting him when he takes office in January."

"Obama's transition aides have approached Sen. Hillary Rodham Clinton's former campaign manager about taking a senior White House post," the AP reports. "These officials say Patti Solis Doyle is considering taking the job, although she worries about the effect it would have on her two young children. She was contacted about possibly becoming Cabinet secretary, a job that involves coordinating the efforts of the White House and cabinet-level agencies."

Yet don't expect any announcements this week.

As a high-profile female surrogate for Obama who doesn't risk a partisan power shift by leaving office, Michigan Gov. Jennifer Granholm seems like a prime candidate for a cabinet position. But which one?

Michelle Obama was searching for schools in DC. "She headed first to the tony Georgetown Day School, an ultra-progressive prep school where students and their teachers are on a first-name basis. The school, which is pre-K through 12th grade, is brimming with the offspring of several key Obama aides, and a rumored future attorney general, Eric Holder, is a trustee. The Obamas are widely believed to be deciding among three schools -- and the contest has Washington's prep-school parents riveted. The other two contenders are Sidwell Friends and Maret."

OBAMA CABINET SPECULATION LIST:
CoS: Emanuel NAMED / Deputy: Pete Rouse
Press Secretary: Gibbs
Biden CoS: Ron Klain

POTENTIAL CABINET MEMBERS:
Agriculture: Tom Vilsack, Tom Buis (Natl Farmers Union), Charlie Stenholm, Jim Leach
Commerce: Penny Pritzker, Kathleen Sebelius, Jason Furman, John Thompson (Symantec)
Defense: Robert Gates, Richard Danzig, Chuck Hagel, Sam Nunn, Jack Reed, Colin Powell, John Hamre
Education: Joel Klein (NYC), Linda Darling-Hammond, Kathleen Sebelius, Colin Powell, Jim Hunt, Arne Duncan, Inez Tenenbaum.
Energy: Kathleen Sebelius, Philip Sharp, Ed Rendell, Arnold Schwarzenegger (has said no), Al Gore, Jeff Bingaman, Jennifer Granholm
HHS: Tom Daschle, Howard Dean, Eric Whitaker
Homeland Security: Tim Roemer, Ray Kelly, James Lee Witt, Tom Kean Sr, Jane Harman, Janet Napolitano
HUD: Jim Clyburn, Valerie Jarrett, Shirley Franklin (Atlanta mayor)
Interior: Bill Richardson, Inslee, Kitzhaber, Tony Knowles, Ken Salazar
Justice (AG): Eric Holder, Janet Napolitano, Charles Ogletree, Deval Patrick, James Comey, Patrick Fitzgerald, Artur Davis, Tim Kaine, Jamie Gorelick (but was vice chair of Fannie), Ken Feinberg
Labor: Andy Stern (SEIU), Richard Gephardt, George Miller, David Bonior
State: John Kerry, Bill Richardson, Richard Lugar, Chuck Hagel, Richard Holbrooke, Chris Dodd, Hillary Clinton
Transportation: Ed Rendell, Jane Garvey, Mortimer Downey, Earl Blumenauer, Steve Heminger, James Oberstar
Treasury: Larry Summers, Tim Geithner, Paul Volcker, Robert Rubin, Jon Corzine, Warren Buffett, Michael Bloomberg, Laura Tyson, Jamie Dimon, Jacob "Jack" Lew, Sheila Bair
Veterans Affairs: Max Cleland, Tammy Duckworth

OTHER POSITIONS:
CIA: Tony Lake
FEMA: James Lee Witt
EPA: Ian Bowles (MA), RFK Jr, Sebelius, Kathleen McGinty (former secretary of Pennsylvania's Department of Environmental Protection), Mary Nichols (chair of California's Air Resources Board)
FBI: Robert Mueller (term expires 2011)
Fed Chair: Ben Bernanke (at least for first year)
FDA: Steven Nissen (Cleveland Clinic), Joshua Sharfstein (Baltimore health commissioner), Janet Woodcock (Big Pharma’s choice), Susan Wood (GWU occupational and environmental health professor), Diana Zuckerman (president, National Research Center for Women & Families).
Joint Chiefs: Michael Mullen (term ends in late 2009, can expect to be appointed for second term, per tradition.)
Natl Economic Council: Furman, Goolsbee, Laura Tyson
NSA: Jim Steinberg, Dennis Ross, Greg Craig, Susan Rice, Tony Lake
OMB: John Spratt Jr, Gene Sperling, Furman

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Comments

I'm with Barack on this one. That's been the problem under Bush, we just haven't done enough deficit spending. Another trillion or so in spending would just be a start to how much money the government should spend that it doesn't have. I don't see any downside to this.

Alan G., NY NY (Sent Tuesday, November 11, 2008 9:31 AM)

Wow. That's a lot of names...

the Pajama Pundit (Sent Tuesday, November 11, 2008 9:32 AM)

So are the unions going to agree not to strike if the auto makers get this bailout? Are the same executives that ruined the industry going to be in charge? What's the payback plan the auto industy has for paying back this bailout? We have a president now that is loose with the people's money, is Obama just going to be more of the same? It starting to look that way. And just what has changed with Obama?

Change This (Sent Tuesday, November 11, 2008 9:33 AM)

Happy Veteran's Day fellow vets, especially fellow disabled vets! So nice to be seeing Obama lay a wreath than that worthless Weekend Warrior or the 5 time Draft Dodger.

Nothing disgusts us vets more than the treatment the Iraqi War vets have been receiving from the bushwhacked administration. We should never be hearing about homeless vets or about substandard treatment of wounded vets, reminds me of how us Vietnam vets were mistreated.

Yes We Did!

Eric, Salinas, CA (Sent Tuesday, November 11, 2008 9:35 AM)

We helped out the banks and the rich now its time to step up and help the real work force the employees of the auto industry.

Paul Wallace (Sent Tuesday, November 11, 2008 9:37 AM)

Now we have to bailout the auto indistry that the repugnant ones helped destroy because they were more interested in protecting Detroit from the reality of higher fuel efficiency. Time to repeal the extra tax depreciation on SUV/s and force businesses that don't need them to scale back to save gas and oil imports.

I'm sure that Obama will pick a far more intelligent and effective team than the bushwhacker did. After the bushwhacker Obama is going to look so effective and clear headed it will win him another term.

Happy Veteran's Day fellow Vets!
Yes We Did!

Eric, Salinas, CA (Sent Tuesday, November 11, 2008 9:41 AM)

Bush could care less about the american economy. Here he is, trying to strong arm congress into giving him a trade agreement that lobbyist paid for before he cares about american people. If he can give out 2 trillion in bailouts and refuse to say who gets them, what is wrong with helping american workers at least get to next year and try to find something different.

IL Worker (Sent Tuesday, November 11, 2008 9:42 AM)

When I have trouble sleeping, I don't count sheep. I count Karl Roves. That ensures pleasant dreams.

Positively Homoerotic FM <><><> ...... <><><> ...... (Sent Tuesday, November 11, 2008 9:43 AM)

Hey I have a Grand Idea, the Auto Industry needs money, I need a car. Buy their products at a reduced rate to generate sales for them and sell give them to the public. Would love that stimulus package. Just in time for Christmas.

Santa Give me that new car (Sent Tuesday, November 11, 2008 9:45 AM)

Happy Veterans Day and Thank you all of you . Change This the man has not even takin office yet and you have an oppinion wow.

Brian M De (Sent Tuesday, November 11, 2008 9:49 AM)

Have you all went out and got your loans since the banks got bailed out? No? Why not? Oh, you can't get one. You have to have perfect credit you say. My, it doesn't look like that trillion dollars we the people gave to the banks have gotten down to us peons.

Now Obama wants to do the same for the automakers. Think you'll be seeing a bright shiny new car in your driverway soon now? You know, as payment for your money helping out the auto industry. Not a chance. That's all your going to get is the bill while the auto execs and unions get your money. Obama is no different then Bush.

Charles Ford III, MI (Sent Tuesday, November 11, 2008 9:53 AM)

Happy Veteran's Day! A special thank you to all our vets. Under the Bush-McCain-Cheney years, the lack of proper care for our vets has been a disgrace. It is very upsetting to see our brave military citizens being neglected. The immoral attitude over the last 8 years concerning our vets must end. They all have fought hard, and now need proper medical support. The medical neglect of all our vets under Bush is criminal! Obama needs to address this situation quickly, because the ungrateful individual in the White House now will not.

Rock,Janesville,Wisconsin (Sent Tuesday, November 11, 2008 9:55 AM)

I'm not sure that I agree on bailing out the auto industry. With the financial crisis, the issues mounted over time but came to a head very quickly and emergency funds were necessary to reconcile the books and encourage lending. With the auto industry, these execs have seen declining sales for YEARS and have ocntinued to make one bad decision after the next. If any bailout is made there should be specific principles in place. The automakers should first have to provide some specific details on how they will slim down their focus between U.S. and international markets, define their cost saving measures to make cars more efficiently, and identify 1-2 key goals for development of future technologies. Obviously they cannot operate as they have for the past years so, as a consumer and a tax payer, I demand to see clear plans for how these companies will use this money and what they project as the payout for these plans.

Cincinnati girl (Sent Tuesday, November 11, 2008 9:56 AM)

It is easy to sit back and whine about the government spending more tax money on bailing out another industry. You need to understand the complex relationship the auto industry has to the rest of the US economy.

If any of the big three fail, hundreds of small suppliers will also go out of business. So we aren't just looking at a handful of manufacturing jobs in a handful of cities. We are looking at tens of thousands of jobs across the US.

Obama recognizes the difficult situation we are in and he realizes that while bailing out the auto industry will exacerbate our deficit spending, it is also the best thing to do for this country. It will save jobs, save tax revenue, and help get our economy back on the right track.

Yes, it will be painful in the near and long term, but to borrow a phrase from his opponents, he is putting Country First.

Chris - IL (Sent Tuesday, November 11, 2008 9:58 AM)

I love what Obama is doing. He is a patriot and he is on the right track to correcting the disaster that George W Bush created.

Positively Full Moon (Sent Tuesday, November 11, 2008 10:00 AM)

Use more composites to build cars...lighter and stronger than metals...

and make it so energy standards are increased..

BJ, CA (Sent Tuesday, November 11, 2008 10:02 AM)

WHY NOT JUST HAVE A 'BIG TWO'?
Three into Two might be a success.

WE DON'T NEED THREE; TWO WILL DO! (Sent Tuesday, November 11, 2008 10:06 AM)

The last thing we need is another trade deal until these economy problems are solved. Hold on Auto Industry, you'll get a better deal in January

GP Chicago/Indiana (Sent Tuesday, November 11, 2008 10:10 AM)

Chapter 11 Bankruptcy would force a TOTAL reorganization of GM and probably others, management changes, United Auto Workers concessions with probable 50% ownership stake...and Thankfully make them look towards the future. A bailout will will only pay salaries, health benefits and pension programs with no other changes.
MAKE THEM PERFORM LIKE A BUSINESS FOR A CHANGE!

Dave (Sent Tuesday, November 11, 2008 10:21 AM)

>>>"Bush indicated at the meeting that he might support some aid and a broader economic stimulus package if Mr. Obama and Congressional Democrats dropped their opposition to a free-trade agreement with Colombia, a measure for which Mr. Bush has long fought, people familiar with the discussion said.
==========
OMG! When does the hurting stop?! President BU--SH-- is actually trying to blackmail Obama into giving him his way at the expense of the auto-workers (who should have been bailed out BEFORE we bailed out the banks) just so he can pay off a few more of his lobbyist friends before leaving office. January 20th can get here fast enough.

Off topic: Big ups to Keith O. last night for his commentary on Prop 8.
http://www.msnbc.msn.com/id/27650743/

70 Days Until Inauguration Day!
http://jawillie.blog.com

jawillie, Philadelphia, PA. (Sent Tuesday, November 11, 2008 10:25 AM)

A house can not be built on sand. We need to build bridges, schools, houses and not gives junkets to greedy fat cats.
That is what Bush/ Cheney/Rove have done. We need to build bridges, schools, houses.

Hell yea, bailout homeowners. I'm tried of being the stock-exchanged.
America won’t be hurting, once Americans get J-o-b-s and healthcare. A J-o-b-s is a verb (action) for those who need to pay their mortgage and a noun to all the fat cats with unneeded junkets.

Beverly in Chicago (Sent Tuesday, November 11, 2008 10:32 AM)

The auto industry is not on Main Street... http://www.enewsreference.com

eNews Reference (Sent Tuesday, November 11, 2008 10:47 AM)

The auto industry needs help, no doubt because they play a role in a green economy. Problem is congress didn't stress fuel effeciency standards...and still doesn't. Now it's a recession and people can't afford their pricey gas guzzlers.

CJ (Sent Tuesday, November 11, 2008 10:48 AM)

The bottom line is that the Auto Industry needs to be saved for the future production of "Green Machines." As for Bush trying to make any deals is a joke! Bush will be up to his little political tricks right up to the end. Obama knows all too well that Bush is a total "special interests" only President. That is fact!

Rock.Janesville,Wisconsin (Sent Tuesday, November 11, 2008 10:48 AM)

We need to fix the auto industry. The U.S. is the only country in the world that doesn't subsidize its auto manufacturing. So if we give them a loan, like we have in the past, and pass some form of universal health care, you'll see the fuel efficient vehicles that are ready to go now. Both GM and Chrysler have electric vehicles on the shelf, they just need the cash to get them to the show floor.
If we don't do this now, we'll be losing the BACKBONE of our economy. People can still get loans for cars, I work in a dealership so I see it daily. And people need to actually shop for a vehicle, not just take some magazine's word for it. I think you'll find that AMERICAN made vehicles are just as good as anything Toyota can crank out. Stop sending all of our money to Japan and you'll see better and better cars coming out of Detriot.

Ryan, Superior, WI (Sent Tuesday, November 11, 2008 10:48 AM)

Colombian free trade deal and the dems in congress oppose it. Why? Something smells here of "rub my back and I will rub yours." - politics as usual.

Perhaps if George W wants the local auto industry to suffer for a questionable trade agreement,perhaps the president-elect should let him stew in his own political juices.

Obviously George W did not learn much from the last election.

Mike Groshong, McMinnville Or (Sent Tuesday, November 11, 2008 10:50 AM)

The best way to succeed in life is to discover something you enjoy that enables you to be happy and with your family. Be determined about this and then offer it to others. www.LikeSoup.com

Jim Campbell, Malibu, CA (Sent Tuesday, November 11, 2008 11:27 AM)

I need bailed out!! I want my stimulus check!!

Ollie (Sent Tuesday, November 11, 2008 11:30 AM)

REMEMBER … as we suffer through this great economic crisis and many people are hurt and ruined …
IT WAS the LIBERAL DEMOCRATS SEEKING TO FURTHER THEIR SOCIAL AGENDA and INCREASE THEIR BASE — THROUGH MANIPULATION OF OUR FINANCIAL INSTITUTIONS —
SUCH AS FANNIE MAE AND FREDDIE MAC — THAT CAUSED THE HOUSING MARKET TO CRASH.

Jimmy Carter’s ’Community Reinvestment Act’ – a law requiring that mortgages must be given to minorities who lacked “credit worthiness” (i.e., a proven ability to repay the loans) - was opposed by most all banks but coerced into being by guess who? – ACORN. This was a liberal Democrats “spread the wealth” scheme.

Now many of these mortgages are defaulting and taxpayers are going to bail them out! The liberal Democrats knew full well this would be the end result and guess what — “we are spreading the wealth by the mortgages bailout!”

Liberal Democrats caused economic crisis! (Sent Tuesday, November 11, 2008 11:51 AM)

I understand that Bush wants to negotiate and not just roll over for Obama on the automaker bail-out, but come on -- NAFTA has caused all sorts of problems in our economy and the Columbia Free Trade Act will do more of the same. Once again, Bush shows that he just doesn't get it -- no wonder the economy is in such a mess!

Indie Woman in Denver (Sent Tuesday, November 11, 2008 11:59 AM)

Hey wheres my bailout? This looks like a bailout of someone elses pay and benefits...no one seems much concerned about mine...socialist Republicans started all of this with their bailout of wall street fatcats

Rick,NC (Sent Tuesday, November 11, 2008 12:04 PM)

Obama's plan for the auto industry has been to retool them to put them in the forefront of technology creating the cars of the future. This "bailout" is loans to the automakers who will grow with this new tech. It is not just the automakers who will lose if we do not act. There are small businesses who supply these auto makers too. We need to invest in our manufacturing industries to create jobs and build our economy. We will see more government investment in alternative energy too. We will be deficit spending but it will be spending that we can see bring progress and jobs. I think the anger is turned in the wrong direction as 2 trillion has been loaned out with no disclosure at the same time we were dealing with the original bailout of Wall Street. Where is the anger over the 140 billion tax change to banks too?

Michael Vandenburg, Vermont, USA (Sent Tuesday, November 11, 2008 12:06 PM)

Who will bail out the U.S. auto industry. Given the history of the last century, the answer should be obvious--the BIG OIL CORPORATIONS! Seriously! SERIOUSLY! Congress should call in the auto industry and big oil. Have them work out a deal. Guaranteed loans. Whatever. The auto industry has been big oil's biggest and most loyal supporters. It's time they returned the favor.

Michael Schuller (Sent Monday, November 17, 2008 8:18 AM)

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