I don't know if I'd count a bailout dead yet. Look what the N.Y. Times is now reporting:

WASHINGTON — President Bush and the Treasury Department signaled on Friday morning that they would consider dipping into the $700 billion bailout program for financial institutions to aid the Big Three car companies, after Republican senators refused to support a compromise proposal to rescue the automakers.

“Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms,” said Dana Perino, Mr. Bush’s spokeswoman, in a carefully nuanced statement released just minutes before the New York financial markets opened. “However, 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.”

The Treasury Department promptly indicated that it would provide short-term relief to the automakers.

“Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry,” said Brookly McLaughlin, a Treasury spokeswoman.


What this fails to mention, naturally is what strings would be attached.