Bailout Watch 136: Barack Obama Promises Personal Intervention

“A bankruptcy of any of the Big Three could be even worse, a harsh reality considered unthinkable a year ago.” So says Detroit Columnist Daniel Howes in his latest column— despite having discussed (and dismissed) GM’s C11 with me two years ago. As proof that a year is an eon in politics, presidential candidate Barack Obama is promising personal intervention in Detroit’s downfall, telling a TV interviewer that he would meet with all the parties concerned, without preconditions. “Sen. Barack Obama, D-Ill., said in a TV interview that if he were elected president, he would meet immediately with the heads of Detroit’s automakers and the UAW to discuss a strategy to make the industry globally competitive. ‘The notion that we can’t compete in an industry that we created I think is, you know, unacceptable. And not only that, but you’ve got an entire Midwest, Ohio, Michigan, big chunks of Indiana, parts of my home state of Illinois, that — the entire fabric of those, those states’ economies are built around the auto industry,’ Obama said, according to a transcript from NBC News.” I wonder what they’ll talk about *cough* bailout *cough*. Meanwhile, the DetN acknowledges our last story: the White House says a GM – Chrysler merger subsidy isn’t on the cards. But the hometown paper claims GM hasn’t given up.

“A person familiar with the situation [oh! pick me! pick me!] said late Thursday that GM remains in talks with Treasury officials, as well as the Federal Reserve, Energy Department and congressional leaders — including Michigan representatives — over the need for a cash infusion into the auto industry. GM is expected to report significant third-quarter losses as early as next week, which will underscore the automaker’s financial problems. The deteriorating financial situation has prompted the all-out push for help by GM, including visits to Washington by GM chairman and CEO Rick Wagoner last Friday and Monday, meeting with White House, Treasury and Commerce officials.

“Granholm said she would back federal aid for a GM-Chrysler merger if it came to that. ‘There will be job loss’ under a merger… ‘but the alternative is worse,’ she told reporters after a news conference on stem cell research.” How… apt.