It is going to be a bad day on Wall Street. This is what we can expect now that the $14-billion emergency bailout for U.S. automakers collapsed in the Senate. The deal to help the auto industry fell a part last night as Republicans tried to break the UAW. Don't believe those lying Repuglicans, this had nothing to do with some principle, it is all about breaking the union. The collapse came after bipartisan talks broke down over union wage cuts, the Repugs wanted the union to basically handover the farm.
Markets oversea's are already falling hard on the news. U.S. Markets are expected to fall. Harry Reid has said he hopes Bush will tap the $700 billion Wall Street bailout fund for emergency aid to the automakers. General Motors Corp. and Chrysler LLC have said they could be weeks from collapse. Ford Motor Co. says it does not need federal help now, but its survival is far from certain, and if GM and Chrysler fall it will need help.
The implosion followed an unprecedented marathon negotiations in Washington among labor, the auto industry and lawmakers who bargained into the night in efforts to salvage the auto bailout at a time of soaring job losses and widespread economic turmoil.
The group came close to agreement, but it stalled over the union's refusal to agree to wage cuts before their current contract expires in 2011. Republicans, in turn, balked at giving the automakers federal aid.
Leave it to the Repuglicans to put ideology above country.