It appears that the Bush Administration is prepared to capitulate to Democratic demands for an auto industry bailout:
WASHINGTON — The struggling auto industry was thrust into the middle of a political standoff between the White House and Democrats on Monday as President-elect Barack Obama urged President Bush in a meeting at the White House to support immediate emergency aid.
Mr. Bush indicated at the meeting that he might support some aid and a broader economic stimulus package if Mr. Obama and Congressional Democrats dropped their opposition to a free-trade agreement with Colombia, a measure for which Mr. Bush has long fought, people familiar with the discussion said.
My guess is that some kind of deal will be struck during the lame-duck session. We’ll get the Colombia trade agreement which is, on balance, a good thing. And, we’ll get saddled with what will no doubt only be the first step in a government bailout of Detroit.
Update @ 3:45pm: The Bush Administration is denying that any deal such as that noted above was discussed:
NEW YORK, Nov. 11–The White House pushed back Tuesday against reports that President Bush has conditioned his support for a new economic stimulus package on congressional backing for stalled free trade agreements.
“The president did not suggest a quid pro quo” during his meeting Monday with President-elect Barack Obama, White House press secretary Dana Perino told reporters traveling with Bush. That contradicted the comments of unidentified officials quoted in newspaper reports Tuesday morning about the meeting in the Oval Office.
But Perino did say Bush remains hopeful that Congress could pass long-delayed free trade deals with Colombia, Panama and South Korea. That could happen before he leaves office on Jan. 20 only if Congress agrees to hold a lame-duck session to consider a new economic stimulus plan.
Something tells me that this is all Washington double-talk and that some kind of deal is in the works.
