Media reports suggest the congressional effort to provide Federal aid to Detroit auto makers may not have enough support particularly from Republicans -- on Capitol Hill. USA Today reports Democratic lawmakers "on Thursday were working out details of a $25 billion measure to aid the foundering US auto industry." But Senate Banking Committee Chairman Chris Dodd "told reporters he didn't 'know of a single Republican who's willing to support' the legislation and he would hesitate to bring up a bill that could fail."
The AP, however, notes that Dodd "suggested that Congress wait until President-elect Barack Obama is sworn in on Jan. 20 to provide further help to the carmakers," Senate Majority Leader Harry Reid "rejected that idea." The Wall Street Journal reports Reid spokesman Jim Manley said the Majority Leader "still believes it is important to address this crisis plaguing our auto industry."
The Wall Street Journal notes House Minority Leader John Boehner "said Thursday that a multibillion-dollar rescue of Detroit auto makers would be 'neither fair to taxpayers nor sound fiscal policy' without requiring dramatic reforms of the companies."
The New York Times reports "the prospects of a government rescue...dwindled Thursday as Democratic Congressional leaders conceded that they would face potentially insurmountable Republican opposition during a lame-duck session next week," amid fears from "some industry experts" that "one of the Big Three automakers will collapse before" Obama's inauguration.
The Hill reports Democrats "are likely to be without three important votes": Obama, Vice President-elect Joe Biden, who "may be busy with the transition," and Sen. Edward Kennedy. Meanwhile, the Detroit News reports GOP Sen. George Voinovich of Ohio "agreed to back efforts to support automakers."
The Detroit Free Press, the Los Angeles Times, the Financial Times, the Washington Times, and Christian Science Monitor run additional stories on the debate over Federal aid to the auto industry.
McConnell May Back "White House Alternative" The Politico reports Senate Minority Leader Mitch McConnell "signaled Thursday that the quickest -- and perhaps only -- viable path for Congress to help the auto industry this year would be to loosen restrictions on a previously approved $25 billion loan package so that the money can be more readily available to distressed companies." McConnell "appeared open to a White House alternative that would revisit the loan money approved in September."
Obama Plan May Include "Auto Czar" The Washington Post reports top Obama advisers are "helping to draft an auto industry rescue plan that would bring new government oversight, including the possibility of an auto czar who could ensure the money was being used wisely." The Detroit News reports potential candidates for the post include "economic adviser Jason Furman, Georgetown University law professor Dan Tarullo and Joshua Steiner, a former Clinton Treasury official." Michigan Gov. Jennifer Granholm and former Michigan Rep. David Bonior "also are advising Obama on the troubled auto industry."
In a story about the Capitol Hill debate over aid to the Detroit auto industry, the New York Times reports "hope among many Democrats on Capitol Hill for an aggressive economic stimulus measure all but evaporated." The Hill, however, says "next week's legislative agenda...will be dominated by an economic stimulus plan and consisting of little else." Majority Leader Harry Reid "wants to move a package with four or five components, including $25 billion in loans for the auto industry, aid to states struggling with Medicaid-caused budget deficits, increased infrastructure spending and possible additional spending on food stamps."
The New York Times reports President-elect Obama "wants Congress to pass a multibillion-dollar economic stimulus package and a bailout for the sputtering auto industry during a lame-duck session next week," though he "will not be there to vote on the proposals."
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While yesterday's Financial Times reported Treasury Secretary Henry Paulson's decision to shift the scope of the $700 billion financial rescue package "was applauded by Republicans and Democrats on Capitol Hill," 24 hours later the situation appears to have changed markedly. The Wall Street Journal reports "lawmakers sharply criticized the Treasury Department on Thursday for saying in recent weeks it intended to buy distressed assets despite having already decided to move away from the concept."
The Financial Times reports "the troubled asset relief programme (Tarp) asset purchase plan has gone the way of the so-called 'superSIV'. Twice, now, the US government has tried to tackle the credit crisis by creating vehicles to acquire toxic assets first using a private sector entity, then a government vehicle. Both efforts have been abandoned."
Meanwhile, a survey of economists conducted by the Wall Street Journal finds most "gave less-than-glowing reviews to Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson. Asked to rate Mr. Bernanke on a scale of 0 to 100, the economists on average gave the Fed chief, a former Princeton professor, a score of 69, a D+." Bernanke's "median grade...was 80. Mr. Paulson received an average grade of 64 and a median of 70."
A survey of economists conducted by the Wall Street Journal finds that "by a ratio of 3 to 1," they believe Fed Chairman Ben Bernanke "should be reappointed by President-elect Barack Obama when the Fed chairman's term comes up in January 2010." The Wall Street Journal also reports the "mild-mannered" Bernanke "will go down as one of the most controversial central bank chiefs in American history, but economists have an early message for President-elect Barack Obama: Don't dump him."
In what media reports are casting as an attempt to set the tone for his position during the upcoming G20 summit, President Bush gave a speech outlining his views on the current economic crisis yesterday. The Financial Times refers to "an impassioned defence of the free market ahead of the...summit," which served "warning that his administration would resist efforts to impose heavy-handed regulation on financial markets." The Wall Street Journal notes Bush spoke "at Federal Hall on Wall Street to members of the Manhattan Institute, a conservative think tank." The New York Times calls the speech "a defiant declaration in his waning days as president."
The Washington Post similarly reports Bush gave his speech "after presiding over some of the most dramatic market interventions in US history," and adds "the president's remarks clearly sought to influence a debate that appears headed in a direction Bush and his aides do not favor, just two months before he leaves office." Other aspects of the story are noted in USA Today, Washington Post, the AP, the New York Times, McClatchy, Washington Times and Christian Science Monitor
Stocks Stage Massive Rebound In Volatile Day The AP reports, "Investors did an abrupt turnaround on Wall Street Thursday, muscling the Dow Jones industrial average up more than 550 points after driving it down near its lows for the year on a stream of negative economic and corporate news." The Dow "rose 552.59, or 6.67 percent, to 8,835.25, after falling as low as 7,965.42 and rising as high as 8,876.59." Similar stock market reports ran in the Financial Times, the Wall Street Journal, the Los Angeles Times, Washington Times, Washington Post and New York Times.
Democratic officials said yesterday that Vice President-elect Joe Biden has tapped Ron Klain to serve as chief of staff, a post Klain also held under Al Gore. The AP reports Klain "is a former partner in the Washington law and lobbying firm O'Melveny & Myers. At the firm, Klain's lobbying clients included Fannie Mae, U.S. Airways, Time Warner and the Coalition for Asbestos Resolution, a business group that sought government help resolving asbestos lawsuits, Senate lobbying records show." The Washington Post notes Klain "does not have a long history with President-elect Barack Obama -- he helped the Illinois Democrat prepare for the fall debates," but Klain "is a loyal Democrat known for his even keel and keen intellect."
Meanwhile, in its "In the Loop" column, the Washington Post reports "Clinton-era State Department chief of staff Tom Donilon" is "now heading the State Department transition team along with another former State Department counselor, Wendy Sherman." Donilon and Sherman, "each mentioned as a possible choice for deputy secretary of state, have ties to Fannie Mae, an organization the Obama transition is especially antsy about."
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In its "In the Loop" column, the Washington Post reports the field of candidates for Secretary of State "may be expanding" and there is "talk" that Sen. Hillary Rodham Clinton is under consideration. NBC Nightly News reported "two advisers to Barack Obama" said Clinton is under consideration. Citing comments by "two Democratic officials in close contact with the Obama transition team," the AP reports "Clinton is among the candidates."
The Politico, meanwhile, says "several Obama transition advisers are strongly advocating" Clinton's selection, "a move that would create the ultimate 'Team of Rivals' cabinet, according to officials involved in the discussions."
Short List The Politico reports an "intense backlash from women's groups may have pushed former Clinton Treasury Secretary Larry Summers off the short-list to lead Treasury for President-elect Barack Obama." But "not everyone agrees that his problems with women have sealed his fate." NOW President Kim Gandy "said there are other reasons to oppose Summers, citing his involvement in Clinton-era policies that many say contributed to the current economic woes." Sources "plugged into financial circles also cite the highly unusual move of reappointing him for a long-term stint at the Treasury helm when he's already held the job."
McClatchy reports Defense Secretary Robert Gates, who said "not long ago that it was inconceivable that he'd remain at his post under a Democratic administration, is likely to remain for a time if President-elect Barack Obama asks him to, defense officials told McClatchy." Gates and Obama "have been communicating through surrogates, and many of Gates' aides expect Obama to ask him to stay."
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On the second day of the Republican Governor's Association conference in Miami, Florida, it was Alaska Gov. Sarah Palin who garnered most of the media spotlight. In a story headlined "Palin Steals The Show At GOP Governors Meeting," The Politico says "220 members of the media descended on the event" for "The Sarah Show." ABC World News reported, "Several of the party's rising stars were there, but who got the most attention? Sarah Palin." The CBS Evening News adds that Palin "is not retreating from the national stage." CBS said Palin "flew into Miami like a hurricane. But when it came time to lay out her vision of the party's future her role in it, her speech was heavy on the past," with Palin citing "folks like Joe the Plumber." NBC Nightly News said of Palin's address to the GOP governors that "...in a group that was largely negative on the current Administration, Palin's positive remarks stood out." Palin: "God bless George W. Bush, and I thank you, Mr. President." NBC added, "In the at times stunningly blunt criticism of the party and the campaign, governors did not openly question McCain picking Palin as a running mate. Still, many fell short of embracing her as they began shaping a vision of the future for the Republican Party."
Media reports also stressed the idea that Palin was setting herself up as new national GOP leader. Fox News Special Report reported that Palin sounded "less like a number two and more like a possible leader of the opposition, saying the Republicans should keep the next administration spending in check." The AP reports that in her speech, Palin "called on fellow Republican governors to keep the new president and his strengthened Democratic majority in check on issues from taxes to health care."
In a story headlined "For Palin, A Surprise News Conference," the New York Times reports that Palin "did something...on Thursday that she had not done in her entire campaign as the Republican Party's vice-presidential nominee: she stood behind a lectern and held a news conference." However, the event was not without drama. CNN's The Situation Room said the press conference was cut short at 11 minutes, "no doubt, because of the awkward staging," with "a dozen of Palin's fellow governors brought in to stand behind her. A last- minute decision designed to show unity, but" one that "resulted in Palin's colleagues and possible future presidential competitors looking like silent supporters, which several governors told CNN made them uncomfortable."
The Atlanta Journal-Constitution reports more than "2,000 people showed up Thursday afternoon to see" Sen. John McCain "at the Cobb Energy Performing Arts Center" as he "rallied the GOP faithful" for Georgia Sen. Saxby Chambliss (R), "who is in a tough runoff battle with Atlanta Democrat Jim Martin." It was McCain's "first political appearance since his loss last week to President-elect Barack Obama." McClatchy reports McCain's appearance, "coupled with former Arkansas Gov. Mike Huckabee's planned visit Sunday, kicks off the cavalcade of Republican Party luminaries who are throwing star power behind Chambliss' campaign to win" the December 2 runoff." Fox News Special Report adds, "National Republicans are billing the Senate race in Georgia as a fire wall against a 60-seat super majority for the Democrats."
President-elect Barack Obama announced his plans to resign from his Senate seat on Sunday, the AP reports. McClatchy notes Obama "didn't discuss the timing of his departure. Theoretically, it could make Democrats more vulnerable to a filibuster if the Senate were to need an extra vote next week or before the year's end on any contentious proposals such as aid to automakers." The Washington Post notes "Obama's resignation could tip the balance of power in the Senate, if only during the lame-duck session, depending on the actions of Sen. Joseph I. Lieberman (Conn.)." The Chicago Tribune, The Hill and Washington Times also report the story.
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Jay Leno: "Here's a little...Philadelphia history for you. It was on this day in 1789 that Benjamin Franklin said those famous words: 'In this world, nothing can be said to be certain, except death and taxes.' Death and Taxes, which ironically" were also the Secret Service code names "for John McCain and Barack Obama."
Jay Leno: "Well, there was a big meeting today between Vice President-elect Joe Biden and Vice President Dick Cheney, or as they're calling it, 'Plugged Hair meets Plugged Arteries.'"
Jay Leno: "But see that's cruel. See, I prefer to call them 'Foot In Mouth' meets 'Shot In Face.'"
Conan O'Brien: "Earlier today, President Bush was in New York, and he gave a speech about the financial crisis and other major problems facing the country. That's right. The speech was called 'So Long Suckers.'"
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