Print and broadcast sources are reporting progress in the negotiations between Congress and the White House over a aid package for Detroit auto makers, though accounts differ on how close the parties are to a final agreement. The Financial Times says the Administration and Hill Democrats "agreed in principle...but remained at odds over key details." USA Today reports there remain "sticking points...on some controversial provisions," including details on the "powerful overseer, a so-called car czar, to supervise company restructuring plans and oversee spending."
The Wall Street Journal reports White House officials "suggested the package isn't rigorous enough, people familiar with the matter said, and would open the door for companies that aren't financially viable to receive long-term financing." Fox News' Special Report refers to "a chilly reception" from the Administration, and The Hill reports White House sources "said Monday afternoon that an initial review of the auto bailout legislation from congressional Democrats appears to be inconsistent with what was agreed to over the weekend." The Los Angeles Times notes White House spokeswoman Dana Perino said "'from our discussion this weekend...indications are that the legislation is moving more toward what the president could support.'" AFP meanwhile, notes "a senior administration official" said "the White House and the Democrats who control the US Congress were at odds on the issue of the long-term viability of the Big Three US automakers."
More optimistic is the Washington Post ¸ which reports on its front page that "despite the administration's last-minute objections, both sides remained optimistic that a deal could be finalized and quickly presented to lawmakers for a vote." Rep. Barney Frank said yesterday, "It is overwhelmingly likely that a bill will be on the president's desk by the end of the week." Also on its front page, the New York Times reports both sides "said Monday that they were close" to a deal, and The Hill says "aides to Senate Majority Leader Harry Reid said votes on the legislation could begin as early as Wednesday, with lawmakers optimistic that they could be finished by Friday."
Meanwhile, the New York Times cautions that "once a deal is set between Democrats and the Bush administration, it must still win the support of at least 10 Senate Republicans." McClatchy also says any emerging plan "faces an uncertain future in Congress." The Hill reports "intra-party rifts among senior members in the Senate are widening this week" among both Republicans and Democrats. The story was also reported by the Washington Times, Washington Post, New York Times, The Hill, the AP, the Detroit Free Press, the Detroit News, and The Politico.
Obama Plan Likened To Nationalization The New York Times reports that in his appearance on NBC's "Meet the Press," President-elect Obama described "a long-term bailout that would be conditioned on federal oversight. It could mean that the government would mandate, or at least heavily influence, what kind of cars companies make, what mileage and environmental standards they must meet and what large investments they are permitted to make -- to recreate an industry that Mr. Obama said 'actually works, that actually functions.'" That "sounds perilously close to a word that no one in Mr. Obama's camp wants to be caught uttering: nationalization."
President-elect Obama's centrist Cabinet appointments have begun to concern the liberal supporters who formed the core of his base. The New York Times reports Obama's appointments "have tilted so much to the political center that they have drawn praise from the likes of Karl Rove and Rush Limbaugh." Although "that alone would seem enough to set off a revolt in his liberal base," many "on the political left are trying to hold their tongues." Liberals so far are "mainly muting their protest, clinging to the belief that Mr. Obama still means what he said on the campaign trail and remaining wary of undermining what they see as the most liberal president sent to the White House in a generation." The Washington Times also says Obama's "early moves have generated schizophrenic reactions - earning him praise from Republicans and cautionary criticism from liberals."
Yesterday morning, The Politico reported that liberals "are growing increasingly nervous and some just flat-out angry that President-elect Barack Obama seems to be stiffing them on Cabinet jobs and policy choices." On MSNBC's Hardball host Chris Matthews said "the left helped get Obama elected and political pressure is building for him to start picking progressives for cabinet positions."
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Some economists are concerned that President-elect Obama's economic stimulus package will become bloated by the time legislation reaches his desk after inauguration. The Financial Times reports "many economists are worrying that the large fiscal stimulus package the president-elect has begun to sketch out over the past few days will keep getting larger the longer it takes to get on to the statute books." The "soonest Mr Obama's package could get into the pipeline would be on January 20 following his inauguration as president. Congress, which starts work on January 6, could have a bill ready by then." Four weeks ago, economists "estimated the US economy needed a stimulus of about $300bn," but that has "since doubled to $600bn and is likely to rise further between now and January if the US economy continues to show signs of being in freefall."
CNN's The Situation Room reported Obama's "aides tell us" his "stimulus package... right now they think will cost under $1 trillion. That's $1 trillion. And they say that they expect...Obama to sign this stimulus package into law almost immediately after he takes office."
Meanwhile, The Hill reports business advocates are "lining up to support...Obama's plan to stimulate the economy with the biggest spending spree on roads, bridges and other infrastructure projects since the Eisenhower administration."
Anti-Foreclosure Programs Not Working A report issued by the Office of the Controller of Currency questions the impact of foreclosure reduction programs, noting homeowners who enter the programs have high re-default rates. The Washington Post says the OCC report "underscored the limited success of industry efforts to reduce foreclosures by modifying mortgage loans, offering fuel for both sides in the debate over whether modification efforts should be redoubled or abandoned." The findings "were described in a speech yesterday by John Dugan, the comptroller of the currency, who said the high re-default rate was 'surprising, and not in a good way.'"
The New York Times reports the "rate at which borrowers fall behind payments again - called the re-default rate - appears to be much higher than what previous studies have found." One explanation "for the high re-default rate might be that banks were not significantly changing the terms of the loans they modified."
The Wall Street Journal nearly "36% of borrowers were more than 30 days past due three months after their loan was modified, and nearly 53% were more than 60 days late after six months, according to an analysis of modifications completed in the first quarter, going through Sept 30."
The Wall Street Journal reports that FDIC Chairwoman Sheila Bair, "an advocate of stepped-up loan-modification efforts, noted the data didn't look at whether borrowers' mortgage payments were lowered, or mortgage companies verified the incomes of struggling homeowners. The information 'raises more questions than answers because it fails to define, in a meaningful way, the modifications that have redefaulted,' she said."
Meanwhile, the Washington Post reports internal Freddie Mac documents "show that senior executives at the company were warned years ago that they were offering mortgages that could pose dangers to the firm, hurt borrowers and generate more risky loans throughout the industry." At Fannie Mae, "top executives were told it was necessary to develop 'underground' efforts to buy subprime mortgages because of competitive pressures, although there were growing risks and borrowers often didn't understand the terms of the loans, documents show."
In an interview with the National Review's Brian York and Rich Lowry conducted on Friday, President Bush "strongly" defended "his decision to go to war in Iraq" and "argued that the US has better relations with many foreign nations than ever before." Bush also "recalled the political pressures on him to retreat before the surge", saying, "It was in this room that a prominent member of my political party said, 'You must remove troops from Iraq because it could cost us elections if you don't.' And it was in this room I looked at him and said, 'You must not understand George W. Bush.'"
White House Derides NYTimes Editorial The Politico reports White House National Security Adviser Stephen Hadley "disputed the accuracy Monday morning of an editorial that ran in the Sunday New York Times." Hadley said the times editorial includes "inaccurate and incomplete statements on pre-war intelligence and the war in Iraq." In the editorial, the Times "takes Bush to task over an interview he gave to ABC's Charles Gibson last week in which he admitted that the biggest regret of his presidency was the 'intelligence failure in Iraq.'" The Hill notes Hadley pointed out that "two reports, including one by the Senate Select Committee on Intelligence, concluded that no political pressure was applied to the intelligence community."
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The AP reports New York Mayor Michael Bloomberg (I) "gave a boost" yesterday to Caroline Kennedy as a replacement for Sen. Hillary Clinton in the Senate, saying, "Caroline Kennedy is a very experienced woman, she's worked very hard for the city. I can just tell you she's made an enormous difference in New York City." The New York Post reports that Bloomberg's "gushing comments about 'CBK' came as many state Democrats were privately questioning the experience and Senate qualifications of Kennedy. ... Some of the mayor's remarks directly bolstered Kennedy in those critical weak spots."
However, CNN's The Situation Room reported, "One Kennedy associate tells us she's not close to a final decision. If she wants the appointment and gets it, she would be an instant star in a seat that's had several." CNN added, "She could clearly raise the estimated $30 million needed to win the seat outright in two years, but there are questions over whether the woman described as 'shy' and 'self-deprecating' has the resume or personality for the post." The selection for the seat will ultimately be the decision of Gov. David Paterson (D).
The AP reports that Illinois Gov. Rod Blagojevich (D), who will select the replacement for Barack Obama in the Senate, "is talking to someone interested in the job: US Rep. Jesse Jackson Jr." Blagojevich "says he's meeting Monday with Jackson and describes the Chicago Democrat as a 'very strong' candidate. The son of civil rights leader the Rev. Jesse Jackson is among several Illinois politicians mentioned as contenders." Roll Call reports "speculation has focused on a handful of Democrats, including" Jackson," state Attorney General Lisa Madigan, state Senate President Emil Jones and Illinois Department of Veterans Affairs Secretary Tammy Duckworth." Davis and Jackson "are waging the most public campaigns by far for the appointment -- a strategy that historically has not proved to be all that effective."
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In the tight Minnesota Senate race, in which Sen. Norm Coleman (R) leads challenger Al Franken (D) b 192 votes, the process is now moving on to dealing with the ballots challenged by each campaign. The AP reports the state's five-member Canvassing Board "will meet Dec. 16 to begin reviewing the disputed ballots." In the meantime, both candidates are working to reduce the number of challenged ballots and speed up the process. The St. Paul Pioneer-Press reports Franken "said he was withdrawing 425 challenges Monday, bringing his total to 1,058 withdrawals out of 3,280 challenges. The Coleman campaign has withdrawn 650 of its 3,375 challenges, and a spokesman said more withdrawals are expected today." On another point of contention in the contest, the Minneapolis Star Tribune reports, "The missing 133 ballots in a Minneapolis precinct are going to stay missing -- at least for now. City spokesman Matt Laible said today that officials had suspended the search for the ballots that began after they turned up missing in the waning hours of last week's US Senate recount." Laible said "the matter will be turned over to the state Canvassing Board, which will decide whether the 133 will be officially counted."
The Washington Post reports on its front page, "Less than 24 hours after his upset defeat" of Rep. William Jefferson (D), Anh "Joseph" Cao "found the weight of the entire Republican Party resting on his diminutive shoulders." The Post notes the chairman of the RNC "said Cao's election Saturday night showed that, even battered and bruised from political drubbings in the past two years, Republicans 'still know how to win elections,'" and House Minority Leader John Boehner "was more blunt, issuing a memo Sunday declaring: 'The future is Cao.'" That despite the fact that "just three weeks ago, no one in the GOP establishment had even heard of Cao."
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Jay Leno: "Insiders say that President Bush and his wife Laura have already bought a home in Dallas, Texas, to move into after they leave the White House. And if this turns out to be true, this would be the first time in his Presidency he's actually had an exit strategy."
Jay Leno: "President-elect Barack Obama was on 'Meet the Press' yesterday, and he told the American people the economy was 'going to get worse before it gets better.' ... See, that's when you know the campaign is really over. Remember before the election? 'The audacity of hope!' 'Yes, we can!' 'A change we can believe in!' Now it's, 'We're all screwed.'"
Jay Leno: "Senator Chris Dodd said the CEO of GM should resign as part of any bailout deal. His feeling is if you run up a giant deficit, and you don't give the American people what they want, you should resign. Wait, how did" Dodd "keep his job?"
David Letterman: "Let me just say a word about these jokes that I am telling right now, ladies and gentlemen. Like President-elect Obama says, 'It's going to get worse before it gets better.'"
Conan O'Brien: "This weekend, at a Kennedy Center Awards ceremony, Barbra Streisand kissed President George W. Bush. Yeah. The ultimate liberal kissed President George W. Bush. Yeah. Afterward, Bush said, 'Who was that guy?'"
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