Efforts to provide emergency loans to struggling U.S. automakers gained momentum on Friday after a grim U.S. jobs report spurred talks between congressional leaders and the White House.So far, this is being spun as a victory for the GOP, but the reality is just a bit further down the article...
U.S. House Speaker Nancy Pelosi has dropped her insistence that the money come from the $700 billion financial bailout fund that the Bush administration had refused to use on automakers, said a congressional aide familiar with the discussions.
Another congressional source said Pelosi was open to the idea of tapping the existing $25 billion advanced energy technology loan fund to help auto companies - an idea the White House has promoted.
Such a move would likely build bipartisan support in Congress for a bill that could be signed into law by President George W. Bush.
Congress and the White House are anxious to prevent the threatened near-term collapse of one or more of the Detroit Three - which directly employ 250,000 people.Somebody in the White House has apparently told Bush that if his final month in office leads to the death of the American Car, well history is really, really not going to look kindly upon him. Not that history had any other place for him but dead last of 44, but apparently that's too much for even Bush to handle.
The fact of the matter is the effective unemployment rate, the rate that includes all the folks who have stopped looking for work, or are scraping by on part-time work, has now reached 12.5%. That means one in eight American workers don't have a full-time job right now, and since December 2007, America has lost 2.7 million jobs.
Neither side wants to take credit for losing millions more should the auto industry fold. In a matter of about 8 hours today, both Obama and Congress have swung into action and the White House has done a complete 180.
By next week, an auto industry bailout could be on Bush's desk.
What a difference a day makes.