A deal was reached to extend Detroit a lifeline.

December 6, 2008 12:00:00 AM PST
Prompted by Friday's dismal jobs numbers, and fear that the auto industry's collapse could push the unemployment rate to 10 percent.This weekend, White House and Congress are hammering out the details worth up to $17-billion dollars in loans to keep G-M, Chrysler, and Ford in business through March. That's about half what the Big 3 say they need to survive.

A breakthrough came after political wrangling between the White House and Congress. Democrat lawmakers led by Speaker of the House Pelosi, insisted funds from the financial industry bailout be tapped. Instead, she yielded to White House demands to use $25-billion dollars already allocated to make greener vehicles. But the White House has not emerged unscathed since many Americans believe the financial sector received preferential treatment

Congressional leaders said they should have the votes to pass rescue legislation as early as next week



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