Talks On Big 3 Expected Monday Between Obama, Bush
POSTED: Sunday, November 9, 2008
UPDATED: 4:41 pm EST November 10,
2008
DETROIT -- The struggling automakers were expected to be high on the agenda for a meeting Monday between President-elect Barack Obama and President George W. Bush.
Obama met with Bush privately in the Oval Office for the part tradition, part courtesy, transition-of-power meeting.
Read More:Bush Welcomes Obama To White HouseAiling Detroit automakers General Motors Corp., Ford Motor Co. and Chrysler are looking for any kind of relief.
But talks between Obama and Bush to bail out the automakers could be stagnant at best. Bush is reluctant to sign a bill that would broaden use of the $700 billion rescue package.
Obama’s soon to be chief of staff, Illinois Rep. Rahm Emanuel, dodged the question Sunday, alluding that the president-elect doesn’t necessarily believe automakers should tap into the same funds meant to improve credit and calm turmoil in the housing market.
"He has been very clear that they're part of any sustained economic activity in this country …,” Emanuel told ABC on Sunday. “They should look at accelerating the $25 billion offered for retooling for the industry going forward.”
Area analysts weighed in Sunday on Local 4’s Flashpoint on why this is a difficult and complicated decision for both the current and incoming administration.
"Well now they're bellying up to the trough, the federal trough, saying 'save us,'" Detroit Free Press columnist Tom Walsh. "The inclination is do the good thing and help them. But I’m also thinking, am I enabling this behavior? Is it just going to go back and do the same bad stuff if I give them the money? This is the question America faces."
House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid sent a letter to Treasury Secretary Henry Paulson this weekend asking for him to at least consider broadening the use of the rescue money to help the auto industry.
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