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The Note: Obama Gambles on Bailout Bill
November 12, 2008 8:29 AM
ABC News' Rick Klein reports in Wednesday's Note:
Whatever the outcome of the clash between the Bush administration and the Democratic Congress over a bailout package for Detroit, know that President-elect Barack Obama placed himself at this table -- and promptly tossed some valuable chips into the pot.
He had an easy way out: the one-president-at-a-time line. He’s just a senator until Jan. 20. He didn’t have to turn his Oval Office session with President Bush into a lobbying powwow. And with just the two of them in the room, he certainly (as the Bush team reminded him with a high hard one tossed via Drudge) didn’t have to turn private talks into a public spat.
With House Speaker Nancy Pelosi and Senate Majority Harry Reid pushing a measure to help automakers during the lame-duck session, they have a partner in ownership: Obama.
It’s a quiet kind of power play by a president-elect who’s seeking a delicate balance: Obama, insisting that the economy needs more help now, is showing action, not just talking about it.
If it works, Obama would notch a legislative victory even before he’s president -- in a quick payoff for his union backers, and (just maybe) for a troubled industry and the economy as a whole.
Read the rest of The Note -- and get all the latest on the 2008 election, Congress, the White House and the wide world of politics every day -- from Rick Klein by bookmarking this link.
But if it fails to pass, or if it passes and then fails to work, or even if it works but fails to impress, the president-elect owns an issue that helped get him here a bit earlier -- and more completely -- than he did before.
“Democratic leaders in Congress said Tuesday they will push legislation next week to use the $700 billion Wall Street rescue fund to bail out Detroit auto makers, and President-elect Barack Obama ordered his transition team to look at ways to aid the car industry even before his inauguration,” The Wall Street Journal’s Jonathan Weisman, Greg Hitt and John D. McKinnon report.
“For Mr. Obama, the crisis in Detroit is turning into an early test of his leadership. Organized labor, including the United Auto Workers, invested heavily in Mr. Obama's campaign,” they continue. “It's a situation Mr. Obama's team had hoped to avoid, potentially giving the president-elect responsibility for an emergency before he has any real authority to deal with it. . . . For Mr. Obama, a public intervention on behalf of Detroit puts his political capital at stake on behalf of companies that have lost the confidence of investors and many consumers -- reflected in the reluctance of banks to lend to the companies and their continuing loss of market share.”
“A senior Democratic official . . . said Ms. Pelosi had decided to challenge Mr. Bush to work with the Democrats or veto aid to the teetering auto companies -- and take the blame if one of them fails,” David M. Herszenhorn and Carl Hulse write in The New York Times. “The White House has resisted calls by Congress to use the $700 billion to help the automakers, saying that money is better spent easing the credit crunch at the heart of the economic crisis.”
Key detail: “Congressional aides said Democratic leaders were coordinating their activities with [Obama’s] transition team,” Herszenhorn and Hulse report.
What of his role? “Mr. Obama does not intend to play a leading role in the [lame-duck] session. Aides said he was focused on the economic packages he would offer as president, as well as working behind the scenes with Congressional Democratic leaders,” Herszenhorn and Hulse report. “But aides have not definitively ruled out the prospect of Mr. Obama casting his vote if it was needed. His Senate replacement will not be named by then.”
Continue reading today's Note by clicking HERE.
ABC News' Hope Ditto contributed to this report.
November 12, 2008 in Biden, Joe, Bush, George W., Clinton, Hillary, Edwards, John, McCain, John, Obama, Barack, Palin, Sarah, Washington, White House | Permalink | User Comments (45)
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Big Shame On Those Who still bear ill feeling against Our WORLD accepetable President Elect !!! Shame on those who still paling around with terrorist sallah faling. shame on all who fell to acknoladge the citizenship of our new president !! shame to you all who think this year is 1808 shame on you who never know that this year is 2008 !!. God bless the President elect.
Posted by: ILOGHALU | Nov 12, 2008 8:41:31 AM
Mr Obama along with the entire Democratic Party, Has been Raping and Pillaging the American people and the Country for a few years now. This year at an all time high.
The bail outs are wrong.
Many companies and Industries have failed or bankrupted over the years. No one lifted a finger to assist, aide or bail them out.
Bail outs are only extending Mismanagement and poor buiness Practices and Lining someone ones Pockets with The Countries and peoples money.
The Government having their fingers in or a vested interest in any Company or buisness is Wrong, and against anti trust lawa.
It makes it to easy for these Buisness's and Industries to be assumed by the Government, Causing Something that shoule never be in America.
The Only ones to benifit from these bail outs are the Democrats in office, coming into office. and the peoples pockets they are lining.
If The Democrats care about America, The American People then how could they do this to them.
They always say they are for the people, and do the absolute opposite. then Throw the people crumbs to appease them.
I know I was better off three years ago, before the Democrats started their Doom and gloom Campaign and playing with the economy.
From one Bitter Democrat to the Democratic Leadership. Stop Exploiting and abusing the people.
Posted by: seah | Nov 12, 2008 8:55:08 AM
Iloghalu, give it a rest. We have bigger fish to fry.
As for the bailout of the Big 3 ... what a crock. If they had remained competitive and put out a decent product maybe they wouldn't be in this boat. The arrogance, not only of the companies, but of the UAW, is breathtaking.
Posted by: JDD | Nov 12, 2008 9:00:53 AM
If O were concerned about our economy, he would be acting NOW, he would quit playing games and attend the economic summit to which he was invited and used the same excuse...one president at a time! BS! Quit playing political games!!!!!!!!!
Posted by: samhiguchi | Nov 12, 2008 9:07:31 AM
Whack Obama - he isn't even in office yet. Put the blame where it belongs.
In case you aren't aware the Republicans have been in office the last eight years. So who's been exploiting and abusing the people.
How do you figure it was the Democrats who did the bailouts, Republicans voted for it also, including MCCAIN - a republican.
Look at the facts before placing blame. Obviously, you don't who's in office or who the president has been the last eight years.
Posted by: smt | Nov 12, 2008 9:18:03 AM
Whack Obama - he isn't even in office yet. Put the blame where it belongs.
In case you aren't aware the Republicans have been in office the last eight years. So who's been exploiting and abusing the people.
How do you figure it was the Democrats who did the bailouts, Republicans voted for it also, including MCCAIN - a republican.
Look at the facts before placing blame. Obviously, you don't who's in office or who the president has been the last eight years.
Posted by: smt | Nov 12, 2008 9:18:04 AM
'Green' Autos, anyone?
Posted by: Deep Release | Nov 12, 2008 9:23:39 AM
smt - Ummmmm first of all the democrats have been in control of congress the past 2 1/2 years, whoa and didn't they sure do a hell of a job! Can't wait to see what happens when they control all three branches! not! (but I don't suppose you have ever heard of checks and balances)
This recession was caused by sub prime mortgage lending, all the democrats idea of spreading the wealth. Bush was calling for regulation (I'm not sure if you are aware of this but that is the complete opposite of handing mortgages out to any idiot that wants to buy a house, thus not causing it).
Wow. That's all I have to say.
Posted by: here it goes | Nov 12, 2008 9:36:41 AM
The only "Change" is what will be coming out of YOUR pockets... Let the "bailouts for billionaires" resume. Pathetic.
Posted by: hmn | Nov 12, 2008 9:37:28 AM
Nancy Pelosi needs to step down. Obama wants to raise higher taxes on people making $250,000 or more. That's BS. He doesn't need to raise taxes at all. Why should we pay for the bail outs of companies that can't keep their own records straight. Lehman Bros. Auto Industry and AIG. If the government can bail them out then they have billions of dollars to spend. They don't need our money. And Obama isn't fooling me. The tax increase will hit everyone not just people making $250,000. Who is he kidding. How about all the senators taking a 15% decrease in their salary. They sit on their butt doing nothing all day long getting big salaries. With the economy being so bad this is not the time to take people's money.
Posted by: Mariann Pepitone | Nov 12, 2008 10:04:57 AM
Let the US automakers declare bankruptcy--so they can re-negotiate their outrageously generous union contracts and retirement packages.
Unless that happens, they can never be competitive against foreign automakers. Taxpayers will keep having to them out in the future--even though Carl Levin and John Conyers would love that.
Posted by: Rust Belt | Nov 12, 2008 10:05:52 AM
hmm, evidently my comment got deleted.
:(
E-mail your Congressmen to vote "NO" on Car Bailout!
Posted by: ajax | Nov 12, 2008 10:06:00 AM
"How about all the senators taking a 15% decrease in their salary. They sit on their butt doing nothing all day long getting big salaries. With the economy being so bad this is not the time to take people's money."
----------------
I love it!!...Best Idea on this site in MONTHS!!! cut the $$ in their pocket!!...BOTH PARTIES!!!
Posted by: Mike_C | Nov 12, 2008 10:11:44 AM
seah: You said a mouthful. But the public went overboard to vote Obama in office. They don't know what's coming to them yet but they will get a taste of it shortly. Before he became the nominee and listening to his speeches on the platform told me he would dictate to what he wants and don't want. I believe I am right because Rep. Broun stated the same thing on the internet. Obama is dictating to the lobbyists already. And there is more to come. I didn't vote for him and have no regrets about it even if McCain lost. The reason that Obama wants many of Clinton's people is because he needs good training for the presidency. And they know more than he hasn't learned yet. The majority of the young people think that he is so brilliant but they are going to get fooled. He will become a ruler instead of a president.
Posted by: Mariann Pepitone | Nov 12, 2008 10:13:03 AM
smt - Dems have been running Congress fro the last 2 years (and shutting down all Republican effort s at regulation in the year prior) They are SQUARELY to blame for the current crisis - their socialist policies towards the lending industry (forcing banks to make loans - at a losing interest rate - to risky (read unable to repay) targets. They forced the govt to support FannieMae, even when failure was leaking. They covered up for Raines et al and - when he was busted for cooking the books - they STILL demanded that our money go rescue FM!! Bailouts DON'T WORK!!! In addition, Dems want NO ACCOUNTABILITY for the bailout results. AIG blew their bailout on spas, luxury goods for the execs and NOW want more!! Call your congressman and tell them: NO MORE BAILOUTS!! btw, if the auto workers hadn't just blown billions of dollars paying their workers to strike, they may not have been in this "LookingForAHandout" position
Posted by: gael | Nov 12, 2008 10:13:12 AM
In case you aren't aware the Republicans have been in office the last eight years. So who's been exploiting and abusing the people.
How do you figure it was the Democrats who did the bailouts, Republicans voted for it also, including MCCAIN - a republican.
----------------------------------
Let's see "how do you figure" ????
I know this gets hard for you liberals, but in these cases, we use MATH.
Very Simple MATH!!!
The Total Congressional (House + Senate) vote on the package
Dem. 211 - 72 75% FOR
Rep. 125 - 123 50% FOR
Now, that is HOW you figure it out.
By the Way, OBAMA also voted for it!
From time to time, why dont you look up at least one or two facts before spewing the same old rhetoric.
Posted by: Mike_C | Nov 12, 2008 10:16:35 AM
Gael,
I agree, no oversight and we already handing this money out. No bailouts for anyone until some kind of oversight is established.
Pelosi & Reid are already off and running with that bag of money and telling us "Trust Us - We know better than you how to hand it out"
By the time these idiots get around to looking at the oversight issue, the 700 Billion will be long gone!
Oh, you have to love this, that woman is slapping all of America in the face by asking Barney Frank to draft legislation for this!! Barney "Oh its not my fault I said Freddie/Fannie would be fine" Frank!!!!
Posted by: Mike_C | Nov 12, 2008 10:23:35 AM
Mike_C: Your right. Both parties. Good thought. I'm with you all the way.
Posted by: Mariann Pepitone | Nov 12, 2008 10:23:40 AM
$700 billion Wall Street rescue fund to bail out Detroit auto makers
Bailing the above people out has
become a American pastime...
The are going down and not coming back...
This Resection / Depression is going
to last a long long time.....
and we are dragging the world with us.
Posted by: Anita Yova | Nov 12, 2008 10:31:34 AM
Well Maybe if we had a President for the last 8 years Be a President and care what was going on in our Country and stop trying to Dictate other Countries and stop DEREGULATING EVERYTHING And payed more attention instead of being an INACTIVE PRESIDENT We Might not be in these messes THANKS ALOT BUSH THANKS FOR NOTHING!
Posted by: Angie | Nov 12, 2008 10:31:46 AM
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