http://www.google.com/hostednews/ap/article/ALeqM5hTlR_ry_mjT2nXKPWyYI4asuW1jQD953U0FG0

 Quote:
WASHINGTON (AP) — The White House sought Tuesday to play down prospects for an imminent bailout for distressed U.S. automakers and suggested any deal requiring taxpayer money will require major concessions by the parties involved.

"We are not going to be rushed into it," presidential press secretary Dana Perino declared.

Only a day earlier, President George W. Bush suggested that a bailout package would come sooner rather than later. "An abrupt bankruptcy for autos could be devastating for the economy," Bush said on Monday. "This will not be a long process because of the economic fragility of the autos."

Perino said the administration was still working on details of the package and wants to hear more from all those involved, including key lawmakers and those in the industry. She said concessions need to be made in exchange for a rescue package that reportedly could reach $15 billion for General Motors Corp. and Chrysler LLC.

"If we're going to use taxpayer financing to assist the automakers, all stakeholders are going to have to come to the table and be willing to show that they are capable and willing to make really tough decisions about the way forward," Perino said.

Perino did not specify what concessions need to be made and by whom, but said, "I don't think that there's any possible way that this president would agree to allow taxpayer financing to go toward firms that are not willing to make tough decisions to become viable and competitive in the future. I just do not think that will happen."

GM and Chrysler have said they will run out of cash within weeks if they don't get help. Ford Motor Co. has said it has enough cash to survive 2009.

The administration indicated it would extend a helping hand to the domestic automakers after a $14 billion aid package to the auto industry failed in Congress last week in part because of a contention that the industry was largely to blame for its own problems.

Perino said at her daily news briefing that "I don't know of an imminent announcement coming from us," suggesting expectations for a quick decision were premature. "We are taking the time to try to do it right and weighing all of the options," she said.

"We will do it if we decide to do it, and we'll do it in the time that we think that is right," Perino added.

Asked about her use of the word "if," when Bush had appeared to signal that some form of U.S. aid would be forthcoming, Perino said: "Because I don't have an announcement for you."

She said she didn't want to appear to signal that help was on its way "if at the end of the day, we don't do something."

Bush himself refused to answer shouted questions about the timing of any auto deal during an unrelated event in the Oval Office earlier Tuesday morning.

Perino said the prime goal remained to "prevent a disorderly bankruptcy."

Perino did not specify what concessions need to be made and by whom, but said, "I don't think that there's any possible way that this president would agree to allow taxpayer financing to go toward firms that are not willing to make tough decisions to become viable and competitive in the future. I just do not think that will happen."

Sen. Carl Levin, D-Mich., has said he expects GM to get $8 billion and Chrysler $7 billion from the Bush administration. He said the Treasury secretary likely would be tapped as a "car czar" to oversee restructuring of the companies.

Vice President Dick Cheney, in an interview with conservative talk show host Rush Limbaugh, cautioned that "if the automobile industry goes belly up now, there's a deep concern that that would be a major shock to the system."

The administration is weighing several options. They include using money from the $700 billion financial bailout fund to provide loans to the carmakers or using money from the fund as collateral for emergency loans the automakers could get from the Federal Reserve.

House Speaker Nancy Pelosi, D-Calif., said the bailout funds were "the only recourse that they have" because of the failure to pass legislation in Congress. She said "something will have to happen imminently" but said requirements for restructuring should be attached to the funds.

"Otherwise, we're just giving life support, rather than a lifeline for viability into the future," Pelosi said.

The White House is keeping President-elect Barack Obama and his advisers informed of the discussions. If administration officials choose not to provide the money now, the Obama team could wait for the new Congress, which will have stronger Democratic majorities. But the delay could risk bankruptcy filings by GM and Chrysler.


Let's hope Bush has regained some sanity. The execs, shareholders, and union need to make massive concessions to get a drop of money. Same should have been done with the Wall Street bailout.