From Bloomberg, “Bush Signals Swift Decision on Funds for GM, Chrysler“:

Dec. 15 (Bloomberg) — President George W. Bush said deliberations by his administration on whether to tap a bank bailout fund to keep General Motors Corp. and Chrysler LLC out of bankruptcy “won’t be a long process” because of the “fragility” of the U.S. automakers.

The president, traveling on Air Force One from Iraq to Afghanistan last night, said he “signaled” his administration is considering using money from the $700 billion fund. Bush said he’s “not quite ready” to announce any rescue plan.

Also from Bloomberg, “GM, Chrysler Failure Would Push Economy Into Abyss“:

Dec. 15 (Bloomberg) — The U.S. risks sliding into a deeper economic slump if General Motors Corp. or Chrysler LLC shuts down because President George W. Bush doesn’t provide short-term financial assistance.

“We’re already in a deep recession in my state, as we are in most of the 50 states,” Senator Sherrod Brown, a Democrat from Ohio said on CBS’s “Face the Nation” yesterday. “And this would just plunge us deeper into economic problems, into a hole that it would take a long, long time to extricate ourselves from.”

A bankruptcy filing by either company would mean production cuts and plant closings, and tens of thousands of workers would be fired, industry analysts say. That would cause many suppliers to collapse, triggering more job losses, straining the cities and states where the car and parts companies operate, as well as federal safety-net programs.

No point in sugarcoating the bad employment figures from November. From the Bureau of Labor Statistics:

Nonfarm payroll employment fell sharply (-533,000) in November, and the unemployment rate rose from 6.5 to 6.7 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. November’s drop in payroll employment followed declines of 403,000 in September and
320,000 in October, as revised. Job losses were large and widespread across the major industry sectors in November.

As to those industry sectors…

In November, employment continued to decline in manufacturing (-85,000), with widespread job losses occurring among the component industries. Manufacturing employment has declined by 604,000 since December. Within durable goods manufacturing, job losses occurred in November in fabricated metal products (-15,000), machinery (-11,000), wood products (-9,000), furniture and related products (-7,000), primary metals (-7,000), and computer and electronic products (-7,000). Employment in transportation equipment edged up, as a return of 27,000 aerospace workers from strike more than offset a job loss in motor vehicle and parts (-13,000). In the nondurable goods component, job losses occurred in plastics and rubber products (-12,000), printing and related support activities (-5,000), and textile mills (-5,000).

News coverage, commentary:

• Associated Press, “Employers cut 533K jobs in Nov., most in 34 years“
• Reuters, “Grim U.S. jobs data stokes fear around world“
• House Majority Leader Steny Hoyer, “Need for Action Is Clear After Dismal November Jobs Report“
• Speaker of the House Nancy Pelosi, “Shocking Unemployment Numbers Should Compel President Bush to End Opposition to Economic Recovery Bill“
• President Bush, White House statement on the economy.

President Bush repeated his call to use the existing section 136 program from the Department of Energy, the $25 billion already appropriated by Congress:

I am concerned about the viability of the automobile companies. I’m concerned about those who work for the automobile companies and their families. And likewise, I am concerned about taxpayer money being provided to those companies that may not survive. Put out a detailed plan recently that uses money that Congress appropriated last fall for the auto industry — money that can be used so long as the companies make hard choices on all aspects of their business to prove that they can not only survive but thrive.

It is important that Congress act next week on this plan. And it’s important to make sure that taxpayers’ money be paid back if any is given to the companies.