White House May Bail Out Big 3

The Big Three may not be completely out of luck. CNN is reporting that the Bush Administration is considering using the TARP money, originally designated to help banks and Wall Street, to aid the auto industry. The administration long opposed such a move, but with a legislative bailout having failed in the Senate, it may be the industry’s last hope. "Given the current weakened state of the U.S. economy, we will consider other options if necessary—including use of the TARP program—to prevent a collapse of troubled automakers," White House Press Secretary Dana Perino said in a statement. At Portfolio, Felix Salmon points out that the stock market hasn’t tanked too much in the wake of the bailout’s failure in the Senate. “[I]f Wall Street isn't worried, then the chances are that Paulson isn't worried, either. Which is bad news for Detroit, I fear.”