Still, Bernstein and other experts argue that, given the potential damage an automaker bankruptcy might inflict on the economy, Obama would be hard-pressed to deny assistance.
"An auto collapse would shift a recession into much higher gear," Bernstein said. "The economy just can't take that hit right now."
One detail of the recovery plan that may not emerge until closer to Inauguration Day is how the money will be disbursed for infrastructure projects. Such undertakings often require long lead times to prepare engineering studies and environmental surveys and address other technical issues, possibly delaying their stimulative effect.
"A project like a subway takes a long time," said Lawrence E. Harris, a professor of finance at USC's Marshall School of Business. "But lots of tradesmen who know how to build houses can build community buildings, senior citizen centers and early childhood centers, which don't take a long time."
Harris also observed that upgrading the nation's high-tech infrastructure will pay long-term dividends.
"The air traffic control system could use some new funding," he said.
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michael.hiltzik@latimes.com
