Obama starts jawboning


the use of public appeals (as by a president) to influence the actions especially of business and labor leaders

Obama denies bailout funds to automakers

The White House says neither GM or Chrysler submitted an acceptable plan. The GM CEO has resigned effective immediately after Obama requested he do so.

It appears the government will perform triage and not attempt to save Chrysler.

Chrysler is an almost purely domestic company that has passed through several ownership changes and is not viable as a standalone company. It was “never in position to pay down its debt.”

Obama to bankers: “Show some restraint”

“Clearly, the president said: ‘Look you can help me by helping yourselves and moderating this behavior and bringing scale to this and making sense out of it so the administration doesn’t have to step in.'”

His implied threat to the bankers is obvious.