Political Perceptions: Who’s Willing to Save Detroit?

The auto companies begin an uphill climb to federal aid in Congress Thursday, with President-elect Barack Obama as perhaps their best hope, writes David Rogers of Politico. “Unlike the banking industry, the carmakers have no strong in-house champion like Treasury Secretary Henry Paulson or Federal Reserve Chairman Ben Bernanke to help make their case,” Rogers writes. “In fact, the companies’ task is that much harder because of the greater ‘anti-bailout’ sentiment in Congress now following Treasury’s use of the rescue funds approved this fall.” But, he adds, if the hearings beginning in the Senate and moving to the House create “some political shift,” the “pressure will mount on all sides—including Obama— to engage more fully to find the needed financing.” Much hangs on House Speaker Nancy Pelosi : “Never a natural ally for the auto companies given her environmental priorities, the California Democrat again said Monday that bankruptcy was not an option. But her first preference is for ... (link)