A day after the Republicans killed the rescue legislation in Congress, George W. Bush realized he was about to be George Herbert Hoover Bush, and so changed his mind about using money from the TARP bailout. The TARP is the $700 billion Troubled Assets Recovery Program, the financial industry bailout plan enacted in October. The White House warned of the severe impact on a weakened US economy if the auto makers collapsed. President Bush had originally refused to use the bailout fund to help the auto makers, insisting that aid come from Congress. But the White House said it must reconsider after the Senate failed to agree on a $14 billion rescue plan late Thursday night.
In a letter to Bush, House Speaker Nancy Pelosi urged the president to demand "the same tough accountability" and taxpayer protections from the automakers as was contained in legislation that cleared the House at midweek.
President-elect Obama has also contacted President Bush and urged him to give the U.S. Auto industry the band aid that would get them trough the end of the year, so he and the Democrats can address the problem early next year. Obama, who will inherit the problem next month said,
"My hope is that the administration and the Congress will still find a way to give the industry the temporary assistance it needs while demanding the long-term restructuring that is absolutely required."Here is video from earlier this morning: