[Fred Hayek]

First impression - check the serpentine belt.

[norwaypinesavage]

I vote with Fred Hayek, response #2. That was my first guess, as well. One of your accessories (alternator, power steering pump, A/C compressor, etc could have stopped spinning causing the belt to smoke. That explains both the light, and the loss of power steering. It's likely, though, that you'll have to find out which accessory it was, since the problem is not likely to simply disappear.

[concerned about politics]

First impression - check the serpentine belt.

Yep. This is probably why the dealer won't answer his question. A serpentine belt only runs about $20.
Water pump, steering pump, alternator,....if he pulled right over he should be ok. Car just got a little too hot.
This happened to me about a mile from home. The car did get hot, and steering was really hard. It took about 20 minutes for my husband to replace it.