Hill leader says jobs report argues for car rescue

[BlueJessamine]

Source: Yahoo News/AP

By JULIE HIRSCHFELD DAVIS,
Associated Press Writer


WASHINGTON – A key House chairman warned colleagues that inaction on an auto bailout "would be a disaster," especially in light of Friday's bleak new unemployment figures.

Congress was considering a range of options, including a government-run management board. But no plan seemed to be gaining much traction.

House Financial Services Committee Chairman Barney Frank, D-Mass., said "the country is held hostage" by the debate raging over how to help Detroit's Big Three automakers — and the prospect of congressional paralysis.

CEOs of Detroit's Big Three testified for a second day on why they needed an immediate infusion of up to $34 billion to survive, two weeks after they were sent home empty-handed and told to come back with more detailed plans of how they would spend the money and restructure their companies.

"We believe this is the least costly alternative," Chrysler LLC chief executive Bob Nardelli told the panel.

Frank noted unemployment figures announced earlier Friday that reported the biggest monthly job loss in 34 years.



Read more: http://news.yahoo.com/s/ap/20081205/ap_on_go_co/congress_autos;_ylt=AtrEALhRvjOcBj8xS6ZrXH.yFz4D

[phantom power]

1. Pushing on a string.