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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

State to Feds: Bail Out Detroit

Six governors have joined the Michigan delegation in turning up the heat on Treasury Secretary Hank Paulson and Fed Chairman Ben S. Bernanke, pleading for an infusion of cash into the ailing U.S. auto industry.

In a letter sent yesterday, six state governors called for "immediate action" to promote liquidity, arguing "the financial well-being of other major industries and millions of American citizens are at risk."

The signees:

- Michigan's Jennifer M. Granholm (D)
- Kentucky's Steven L. Beshear (D)
- Ohio's Ted Strickland (D)
- Delaware's Ruth Ann Minner (D)
- New York's David A. Paterson (D)
- South Dakota's M. Michael Rounds (R)

Much like the Michigan delegation, the governors made the case that the auto industry is just too big to fail.

Automakers and auto-related sectors employ millions of Americans, they write. They are among the largest purchasers of steel, aluminum, iron, copper, plastics, rubber and electronics.

Further, the governors argue, a large network of suppliers, vendors and dealers rely on the economic stability of Detroit.

-- Kendra Marr

By Frank Ahrens  |  October 30, 2008; 2:20 PM ET
Categories:  The Ticker  
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Next: Goodbye, Moto: 3,000 Layoffs at Motorola


I watched several cnbc analysts a couple of days ago very cavalierly calling for the Fed Gov't to just let GM go under like it was really no big deal. I was furious! These are the very same people who were screaming for the bailout of the banks a month ago! But hey, it's no skin off their nose if millions of americans lose their jobs....they can pick the stock up for a song...Yippee!!!

Posted by: susanr1 | October 30, 2008 3:52 PM | Report abuse

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