All Blog Posts from Political Hotsheet

President Obama's word of the day is "fight." He used the words "fight" or "fighting" nine times in a brief speech to GM workers in Youngstown, Ohio.

In a campaign-style speech laced with populist themes, Mr. Obama repeatedly reminded the plant workers that he's fighting for them.

He told his audience, "As long as you've still got an ounce of fight left in you, I'll have a ton of fight left in me."

He also touched on his top domestic priority, declaring, "We are fighting for an America where no American should have to worry about going without health insurance or fear that one illness could cost them everything."

The president also announced plans for a new national standard designed to increase gas mileage and decrease greenhouse emissions for all new cars and trucks sold in the U.S. He predicted the action would give auto companies "long-overdue clarity, stability and predictability."

The president spoke near the production line where compact Chevy Cobalts are made. To the cheers of workers who build the cars, he said the model was among the most popular cars in the recent "cash for clunkers" program that paid new car buyers up to $4,500 to purchase more fuel efficient models.

GM has boosted production of the compact car and rehired laid-off workers at the plant where the president spoke.

Obama: Automakers Getting Back In Game

CBSNews.com Special Report: Health Care

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Peter Maer is a CBS News White House correspondent. This story was filed from Pittsburgh, Pa., where Mr. Obama speaks to the AFL CIO convention later today. You can read more of his posts in Hotsheet here.

White House Senior Advisor Valerie Jarrett appeared on CBS News' 100 Days Live Webcast Wednesday night to field questions about her boss' first months in office. The longtime Obama confidant discussed everything from the "torture memos" to the America's faltering automakers to the president's efforts to quit smoking.

Jarrett said that getting out of the White House and talking to average Americans outside the Beltway bubble is what keeps the president grounded.

"Seeing the challenges that they face that’s what gives him the fortitude, and the strength, and the courage to get up everyday," Jarrett told CBS Evening News anchor Katie Couric.

When it came to the administration's decision to release memos documenting the CIA's use of harsh interrogation techniques, Jarrett said the president would not prosecute officials who were just following orders.

"We don’t want to get distracted by looking back, we need to move forward," Jarrett said. She then noted that the decision to seek legal action against those who devised the policies ultimately lies with Attorney General Eric Holder.

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President Obama Monday morning announced his administration's new policy for General Motors and Chrysler. He gave the auto giants working capital for 60 and 30 days, respectively, in which they are expected to come up with a plan to become viable in the long term. (Read more about the plan here.)

"I am announcing that my administration will offer GM and Chrysler a limited period of time to work with creditors, unions, and other stakeholders to fundamentally restructure in a way that would justify an investment of additional tax dollars; a period during which they must produce plans that would give the American people confidence in their long-term prospects for success," he said.



He also discussed his openness to letting the companies go into bankruptcy, saying they "need a fresh start to implement the restructuring plans they develop."

"Now, I know that when people even hear the word 'bankruptcy' it can be a bit unsettling, so let me explain what I mean," he said. "What I am talking about is using our existing legal structure as a tool that, with the backing of the U.S. government, can make it easier for General Motors and Chrysler to quickly clear away old debts that are weighing them down so they can get back on their feet and onto a path to success; a tool that we can use, even as workers are staying on the job building cars that are being sold."

"What I am not talking about is a process where a company is broken up, sold off, and no longer exists," he continued. "And what I am not talking about is having a company stuck in court for years, unable to get out."

"...if you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always," he added. "Your warrantee will be safe. In fact, it will be safer than it’s ever been. Because starting today, the United States government will stand behind your warrantee."

The president's full remarks, as prepared for delivery, are below.

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CBS News chief Washington correspondent and anchor of Face The Nation Bob Schieffer was interviewed on The Early Show this morning to talk about President Obama's plan for auto industry.

Schieffer also talked about his interview with Mr. Obama on yesterday's Face The Nation and previewed Mr. Obama's trip to Europe and Turkey that begins tomorrow.

"I don’t think too much is gonna happen on this trip," Schieffer said. "They had great hopes for all of this, some sort of a new world financial reform where everybody got together. But quite frankly the Europeans are not very happy with the way things are going. They don't like all of this debt… I think we're gonna get a lot of pictures and lot of earnest statements. I don’t think we're gonna see much happen."

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On Face The Nation Sunday, President Barack Obama said that U.S. automakers have not yet made the necessary case for receiving additional federal funds - even though their deadline for reconfiguring their business plan is Monday.

“They're not quite there yet,” the President told Face The Nation host Bob Schieffer.

The president acknowledged the efforts being made by Ford, Chrysler and GM since they initially asked for bailout funding.

“There's been some serious efforts to deal with a combination of long-standing problems in the auto industry and the current crisis,” he said.

Mr. Obama will announce his plan for the flailing American industry on Monday and was resolute that the carmakers still have a way to go to prove their business models are sustainable.

“What we're trying to let them know is that we want to have a successful auto industry, U.S. auto industry,” President Obama told Schieffer. “We think we can have a successful U.S. auto industry. But it's got to be one that's realistically designed to weather this storm and to emerge, at the other end, much more lean, mean, and competitive than it currently is.”

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Ohio Gov. Ted Strickland said today that a collapse of one of the "Big Three" American car companies would not only effect the other two, but would also have a huge impact on foreign car makers, too.

"It will impact all auto companies -- including Honda and Toyota and all the others -- because they have the same supply network," Stickland, a Democrat, said on CBS News' Face The Nation. "This supply chain is very fragile, and if it starts to collapse it could have a cascading effect that could quite frankly cripple an industry that has been so vital to the economy of our entire nation for so long. So it's very important that the auto industry gets the help it needs to survive."

Strickland also told host Bob Schieffer about conversations he's had with officials from Honda about the problems facing General Motors, Chrysler and Ford.

"I've had officials from the Honda corporation come to me, say to me, 'Governor, we're not usually in the business of advocating for our competitors, but it is so important that the auto industry and the big three be preserved.'"

President Bush will soon announce his plan to rescue the automakers with an immediate $13.4 billion loan (with $4 billion more available in February), but here's a sneak peak of the plan, as released by the White House:

Purpose: The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing.

Amount: Auto manufacturers will be provided with $13.4 B in short-term financing from the TARP, with an additional $4 B available in February, contingent upon drawing down the second tranche of TARP funds.

Viability Requirement: The firms must use these funds to become financially viable. Taxpayers will not be asked to provide financing for firms that do not become viable. If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury.

Definition of Viability: A firm will only be deemed viable if it has a positive net present value, taking into account all current and future costs, and can fully repay the government loan.

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President Bush will soon announce his plan to rescue the automakers with an immediate $13.4 billion loan (with $4 billion more available in February), but here's a sneak peak of the plan, as released by the White House:

Purpose: The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing.

Amount: Auto manufacturers will be provided with $13.4 B in short-term financing from the TARP, with an additional $4 B available in February, contingent upon drawing down the second tranche of TARP funds.

Viability Requirement: The firms must use these funds to become financially viable. Taxpayers will not be asked to provide financing for firms that do not become viable. If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury.

Definition of Viability: A firm will only be deemed viable if it has a positive net present value, taking into account all current and future costs, and can fully repay the government loan.

Read full post…