On the edge

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: from other firms indirectly affected. The cost in transfer payments and lost taxes would exceed $100 billion over three years. Some of Mr Cole’s assumptions are likely to be too pessimistic, but his blood-curdling forecast and others like it have helped to convince legislators that the $50 billion of help that the carmakers are asking for would be cheap at the price.

How and when the rescue funds will arrive is less certain. Nancy Pelosi, the House speaker, has called for a bill giving the carmakers access to the $700 billion Troubled Asset Relief Programme (TARP) established to shore up failing banks. But Hank Paulson, the treasury secretary, said on November 12th that this was not what the TARP had been intended for. Some are calling for a repeat of the scheme used to bail out Chrysler in 1979. On that occasion, in exchange for a loan of $1.5 billion, the government received warrants that it eventually sold for a profit.

A “lame duck” session of Congress could be convened as early as next week to pass the necessary legislation.

President Bush might still veto it, but is less likely to do so if Mr Obama backs the plan. His recent victory is at least one piece of luck to have come the carmakers’ way.