Obama On Auto Bailout: "Patience Is Running Out"

By: Kevin Hechtkopf
Topics: White House

(CBS)

President-elect Barack Obama weighed in on the auto industry bailout during a news conference this afternoon.

"The American people's patience is running out and they should seize on this opportunity over the next weeks and months to come up with a plan that is sustainable," the president-elect said.

Mr. Obama wouldn't say if he had any specific changes to the plan laid out by President Bush this morning because he had yet not examined the exact details.

He did say it was "absolutely necessary" to restructure the industry, but also added that all stakeholders should be a part of the process so that it was not just "workers bearing the brunt of the restructuring."

As he has every day this week, Mr. Obama held a news conference to announce picks for his Cabinet and other major offices. Today, he named Democratic Rep. Hilda Solis, Calif., as his pick for secretary of labor, Republican Rep. Ray LaHood, Ill., for secretary of transportation, former Dallas mayor Ron Kirk for U.S. Trade Representative and venture capitalist Karen Mills to head the Small Business Administration. Other than Mills, we knew about those picks earlier this week. Read more on the picks.

During the question-and-answer part of the presser, Mr. Obama was also asked about the economy and the size of the stimulus package he is preparing. The Washington Post reports today that some published reports have tagged that number as high as $850 million over two years, and some say it could be even higher.

Mr. Obama did not provide a specific number, only saying it would be a "bold" approach. He argued it was a necessary step in light of a deteriorating economy.

"We're not intending to spend money lightly," he added. "I'm a taxpayer like everyone else and I don't want to see money wasted."

Mr. Obama has now announced his entire Cabinet, a few days earlier than any of his predecessors. You can see the whole list here.

The president-elect now plans to head off to Hawaii for a vacation, so we do not expect to see much of him for the next week or so.

See Also:

You can read more on the bailout plan and reaction here.

You can see the basic details from the White House plan here.

President Bush's complete statement

Reaction from the automakers

And here are the exact terms of the loans as given by the Treasury to car companies (PDF): GM | Chrysler

Kevin Hechtkopf
Kevin Hechtkopf is CBSNews.com's politics editor.
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by stupidrules3 December 22, 2008 10:24 AM EST: If the automakers are such a good risk, why don''t the banks bail them out with the billions we just gave them???????; Reply to this comment


by stupidrules3 December 22, 2008 10:21 AM EST: You know, I don''''t like the bailouts by the government anymore than the rest of the taxpayers. But the Big 3 are getting a LOAN!
Posted by oleander8 at 10:57 AM : Dec 20, 2008

Yeah, they just got a loan. at this point it would be prudent to refer to the subprime mess. This "loan" looks a lot like that situation. Let''s loan money to someone who probably will not be able to repay it. Our government needs to learn that it cannot spend it''s way out of this mess.; Reply to this comment


by samthetvcat December 20, 2008 2:01 PM EST: ---"But the Big 3 are getting a LOAN!"---
Posted by oleander8

Great point oleander . . . I support the loan, and I believe in the big 3 and want to see them succeed. I would just really love to see them all stop playing hardball at the bargaining table and instead focus on doing whatever it takes to make their company viable . . .; Reply to this comment


by samthetvcat December 20, 2008 1:58 PM EST: ---"Bush just showed that he is just another "liberal" Democrat"---
Posted by hclinton2012

You know what gets my goat are all the ''centrists'' who think embracing ''free trade'' somehow makes them more enlightened, so they''re conclusion is therefore that we need a TRILLION dollars to make the economy work.

GDP is comprised of 5 elements . . . rather than focusing on the markets and growing exports they think Government spending in the TRILLIONS is the solution and that makes ME far left?

Five elements to the GDP, and team Barack''s economic recovery plan only focuses on 3 of the 5. Therefore, I give his solution a 3 out of 5.; Reply to this comment


by oleander8 December 20, 2008 1:57 PM EST: You know, I don''t like the bailouts by the government anymore than the rest of the taxpayers. But the Big 3 are getting a LOAN! The financial institutions got WELFARE and have done nothing but continue layoffs, foreclosures, and refused spread the wealth . At least the LOANS will help some taxpayers keep their jobs. What have the WELFARE financial institutions done???; Reply to this comment


by samthetvcat December 20, 2008 1:27 PM EST: ---"The American people''s patience is running out and they should seize on this opportunity over the next weeks and months to come up with a plan that is sustainable," the president-elect said.---

All these fake threats of possibly letting the industry go sort of get contradicted when both Barack and Bush also state that they''re not going to let the industries fail under their watch.

With so much at stake, shouldn''t the Government also be trying to put together a plan of how they see the companies becoming viable so when GM and the UAW are reluctant to make concessions they can point to their alternate data?

Otherwise don''t the key players just have incentive to maximize their own take at taxpayers'' expense since no President is willing to let them fail?; Reply to this comment


by zzy-izzy December 20, 2008 10:39 AM EST: windmaster12 i was on a cell-phone have at&t and i think this is what they said but i am not going to spend the taxpayers money until i see the check ok.; Reply to this comment


by r9119111 December 20, 2008 10:37 AM EST: The solution for our problems is to demand honesty and hold people accountable for their actions.; Reply to this comment


by zzy-izzy December 20, 2008 10:34 AM EST: windmaster12 i called and they said the check would be in the mail and we should get it on Feb 30 2009 and the $60.000 is right in the money and the check will be for sixty thousand four hundred twenty three dollars and twenty five cents.But if yu d not get it on Feb 30 no need to worry it is in the mail.; Reply to this comment