Friday, December 12, 2008
Yesterday's blog post concluded with a brief remark on the possibility of U.S. airlines falling in line behind the automakers if the global economic crisis proves too damaging. News that the bailout bill died in the Senate Thursday (see The Economist's story) has been topped with new reports that the White House is contemplating using funds from the Wall Street bailout package to help prop-up "The Big Three" (see the latest stories from The Wall Street Journal and The New York Times here and here). It will be interesting to see what (if any) future action Congress will take on behalf of the automakers once President-elect Obama (and a Democrat-dominated Congress) takes office next month. As The Economist mentions, "[h]is statements on the issue have so far been rather gnomic." This leaves lingering questions over whether he'll start a soup line for America's failing businesses or simply let the market do its (occasionally dirty) work. The airlines may still have someone to hold their hats out to.