Obama Asks Bush to Provide Help for Automakers

By JACKIE CALMES

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.

The Bush administration, which has presided over a major intervention in the financial industry, has balked at allowing the automakers to tap into the $700 billion bailout fund, despite warnings last week that General Motors might not survive the year.

Mr. Obama and Congressional Democratic leaders say the bailout law authorizes the administration to extend assistance.

Mr. Obama went into his post-election meeting with Mr. Bush on Monday primed to urge him to support emergency aid to the auto industry, advisers to Mr. Obama said. But Democrats also indicate that neither Mr. Obama nor Congressional leaders are inclined to concede the Colombia pact to Mr. Bush, and may decide to wait until Mr. Obama assumes power on Jan. 20.

Separate from his differences with Mr. Bush, Mr. Obama has signaled to the automakers and the unions that his support for short-term aid now, and long-term assistance once he takes office, is contingent on their willingness to agree to transform their industry to make cleaner, more energy-efficient vehicles.

A week after Mr. Obama’s election, and more than two months before he takes office, the steadily weakening economy and the prospect of many more job losses are testing his effort to remain aloof from the nation’s business on the argument that “we only have one president at a time.”

As the auto industry reels, rarely has an issue so quickly illustrated the differences from one White House occupant to the next. How Mr. Obama responds to the industry’s dire straits will indicate how much government intervention in the private sector he is willing to tolerate. It will also offer hints of how he will approach his job under pressure, testing the limits of his conciliation toward the opposition party and his willingness to stand up to the interest groups in his own.

G.M.’s shares tumbled on Monday to 1946 prices, closing down 23 percent to $3.36, as analysts downgraded the stock on worries it would soon run out of cash and shareholders would be wiped out by any federal bailout.

read more...

On Plane, Obama Reaches Across the Aisle

By Peter Baker

CHICAGO – It was another day on the speculation roller coaster.

Not long after leaving the White House on Monday afternoon, President-elect Barack Obama talked by telephone on his plane with Senator Richard G. Lugar, a Republican from Indiana.

Aha! So maybe Mr. Obama really is considering Mr. Lugar for secretary of state, as many in Washington have been assuming. But wait. Mr. Lugar’s office said the conversation Monday had nothing at all to do with the Cabinet.

“It was not about secretary of state,” Andy Fisher, a Lugar spokesman, said in an e-mail message. “Lugar is not interested (as he explains repeatedly). Nothing about that position was discussed during the call. They discussed ways in which they will continue to work on a number of foreign policy fronts as Lugar continues his Republican foreign policy leadership in the Senate.”

The call to Mr. Lugar was one of three Mr. Obama made after visiting President Bush at the White House, then stopping for a private, 40-minute meeting at a fire station at the airport. Aides would not describe whom he met with. It’s a fair guess that he may have been meeting with a candidate for the Cabinet. But then again, that’s also just a guess.

In this transition period, reporters are literally left trying to read tea leaves. And even lips. At one point on the plane, Mr. Obama stood in the aisle in the front, one leg up on a seat, a mobile phone pressed to his ear and faced toward the back, where the pool of reporters following him around was located. The reporters strained to hear what he was saying. A few snatches of his end of the conversation were audible:

“I am not going to be spending too much time in Washington over the next several weeks,” he was overheard telling the other person on the phone.

“I don’t want us to go lurching so far in one direction,” he said at another point.

“If we come up with some good solid sensible options … ” he said a little later.

What he was referring to was yet another mystery. After a couple minutes, Robert Gibbs, Mr. Obama’s adviser and soon to be his White House press secretary, noticed that the reporters were intently listening and jumped to his feet to tell the president-elect, who then turned around so that he could not be overheard.

Mr. Gibbs later came back to talk to reporters and joked about blocking for Mr. Obama. The overheard call, he said, was not the one with Mr. Lugar.

Obama Team Weighs What to Take On First

By PETER BAKER

WASHINGTON — With the economy in disarray and the nation’s treasury draining, President-elect Barack Obama and his advisers are trying to figure out which of his expansive campaign promises to push in the opening months of his tenure and which to put on a slower track.

Mr. Obama repeated on Saturday that his first priority would be an economic recovery program to get the nation’s business system back on track and people back to work. But advisers said the question was whether they could tackle health care, climate change and energy independence at once or needed to stagger these initiatives over time.

The debate between a big-bang strategy of pressing aggressively on multiple fronts versus a more pragmatic, step-by-step approach has flavored the discussion among Mr. Obama’s transition advisers for months, even before his election. The tension between these strategies has been a recurring theme in the memorandums prepared for him on various issues, advisers said.

“Every president is tempted to take on too much,” said one Obama adviser, who spoke on condition of anonymity to discuss internal deliberations. “On the other hand, there’s the Roosevelt example and the L.B.J. example, which suggest an extraordinary president can do an awful lot. So that’s the question: Is it too risky for the president to be ambitious?”

Much of the issue may be out of Mr. Obama’s hands. The $700 billion financial bailout threatens to push the deficit into the stratosphere. “The poor man has his hands tied by the economic and financial mess we have right now,” said John Tuck, a former aide to President Ronald Reagan. “I don’t know what his options are. They’re very, very limited.”

At a news conference Friday and again in a radio address on Saturday, Mr. Obama signaled that he intended to move quickly to address the nation’s financial problems, despite any obstacles. “I want to ensure that we hit the ground running on Jan. 20,” he said on Saturday, “because we don’t have a moment to lose.”

The argument for an aggressive approach in the mold of Franklin D. Roosevelt or Lyndon B. Johnson is that health care, energy and education are all part of systemic economic problems and should be addressed comprehensively. But Democrats are discussing a hybrid strategy that would push for a bold economic program and also encompass other elements of Mr. Obama’s campaign platform, even if larger goals are put off.

Congressional leaders want to move swiftly in January to pass a major expansion of the State Children’s Health Insurance Program — a plan vetoed by President Bush — as a step toward the broader coverage Mr. Obama promised. Likewise, Democrats plan to incorporate his proposed middle-class tax cuts in the economic legislation or pass them in tandem. And Mr. Obama could increase investment in alternative energy as a down payment on a far-reaching climate plan.

read more...