Among the many revelations in a new book written by former President George. W. Bush is that he met with President-elect Barack Obama shortly after the 2008 election and assured him that he would use federal funds to keep GM and Chrysler alive so that his administration could craft a more permanent solution. The Detroit News reports:
In “Decision Points,” being released by Crown Books Tuesday, Bush writes that he told Barack Obama Nov. 10, in their first meeting after the election, that he wouldn’t let the auto industry collapse.
Later that week, Bush told his advisers of the decision.
“I told Barack Obama that I wouldn’t let the automakers fail,” Bush writes. “I won’t dump this mess on him.”
Bush says that in the end, he decided to rescue the two automakers because of the potential impact on the U.S. economy.
Bush’s advisers were telling him that with the nation’s economy in such a fragile state, allowing the American auto industry to collapse and go into immediately bankruptcy would push the country into a great depression. The short-term financing Bush extended allowed the Obama administration to devise a policy for saving the auto industry from collapse and return them to profitability.