Bailout for the Auto Industry Crushed by the Senate

- By Bossip Staff Categories: For Discussion, News, SMH

Posted by Bossip Staff

detroit

The Senate crushed the proposed bailout for the automotive industry:

The Senate on Thursday night abandoned efforts to fashion a government rescue of the American automobile industry, as Senate Republicans refused to support a bill endorsed by the White House and Congressional Democrats.

The failure to reach agreement on Capitol Hill raised a specter of financial collapse for General Motors and Chrysler, which say they may not be able to survive through this month.

After Senate Republicans balked at supporting a $14 billion auto rescue plan approved by the House on Wednesday, negotiators worked late into Thursday evening to broker a deal, but deadlocked over Republican demands for steep cuts in pay and benefits by the United Automobile Workers union in 2009.

The failure in Congress to provide a financial lifeline for G.M. and Chrysler was a bruising defeat for President Bush in the waning weeks of his term, and also for President-elect Barack Obama, who earlier on Thursday urged Congress to act to avoid a further loss of jobs in an already deeply debilitated economy.

“It’s over with,” the Senate majority leader, Harry Reid of Nevada, said on the Senate floor, after it was clear that a deal could not be reached. “I dread looking at Wall Street tomorrow. It’s not going to be a pleasant sight.”

Mr. Reid added: “This is going to be a very, very bad Christmas for a lot of people as a result of what takes place here tonight.”

The Republican leader, Senator Mitch McConnell of Kentucky, said: “We have had before us this whole question of the viability of the American automobile manufacturers. None of us want to see them go down, but very few of us had anything to do with the dilemma that they have created for themselves.”

Damn, it looks like those prayers didn’t get answered after all. SMH @ how all those families are going to be left out in the cold, maybe literally. Damn.

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Comments

  • bg

    1st

  • bg

    It’s so cold in the D!!!

  • bg

    damn Crazy. I thought i was quick draw Mcgraw today.

  • Christie's secrets

    OMG, they cant be serious! they cant purposely let these companies fail! about 300,000 jobs are at stake! only ford is smiling now!i believe they said they dont have any liquidity issue!

  • http://www.LoanUntilFriday.com Di

    Thats bs…U give the banks 700 billion and nothing for car companies? whaaaaaaaaaa!

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  • http://www.gravatar.com Re

    WOW! I really thought they would approve the bill…this is sad for alot of people.

    I guess we should really consider turning to tricking in the streets after all.

  • Sawyer

    The Senate didnt crush this deal the Republicans did cause some representatives want to see the Ford’s and GMs go down which means more business for there state that house foreign car manufactures. Imagine how much money you make with no competion around huh?!

    Whats even more incredible is after this country about 66 million people say the hell with the Repub party, they still have the nerve to let millions of workers get laid off…you’ve got to be sh*tten me?!? This is why the GOP is dead. And good riddins…Jan 20th cant come soon enough!

  • nicole

    IF ANYBODY WANNA MAKE SOME EXTRA MONEY FOR THE HOLIDAYS, THERES A WEBSITE THAT PAYS $0.20-$1.25 OR MORE TO FILL OUT SURVEYS ONLINE. IT TAKES ONLY ABOUT 5 MINUTS TO COMPLETE EACH SURVEY AND IT’S FREE TO JOIN!!! IF YOU WANT TO SIGN UP JUST TYPE CASHCRATE.COM/887940 IN YOUR WEB ADDRESS BOX AT THE TOP OF YOUR SCREEN!!!

  • LADY ARCHITECT (HAPPY AS CAN BE!)

    I feel bad for all of the employees. A part of me kinda sides with the Senate only because the CEOs didn’t have a clear cut plan of what was going to be done with the bailout money. They didn’t have percentages of what money would go wear and how were they gonna incorporate hybrid knowledge. There’s a reason why Toyota and other companies are not suffering like these three companies. Their CEo’s know how to run to the government for bailouts, but they can’t come up with a money plan. The Senate needs to make those CEO’s take their millions and invest in their own companies. They have jets and different cars and mansions while their companies are ready to file for bankruptcy. Makes no sense.

  • Aunt Viv

    This is extremely unfortunate news…I really hope something sound and responsible can be worked out.

    BTW, Nicole and Di you’re insulting.

  • the_one

    Okay I understand the Rep. Senator McConnell, but I also think it is selfish of the Union not to be willing to scale pay now instead of waiting until 2011. It makes no sense, you get laid off now or you take a pay cut and stay in your jobs. Auto workers were not hurting because of salary but they will be when their industry shuts down. I cannot believe either side. Part of this is making concessions. We all have to pair down, we all need to make scarifices. What I find deplorable is that Bush could easily take the 15 billion promised from the financial institutions and keep the same strigent requirements on the auto industry to ensure the money is not misused is mismanaged like the financial institutions appear to be doing with it. I find it simply outrageous. Furthermore, McConnell should choose his words wisely because last time I checked we didnt help the financial institution get to where they are, at least I did not, I do not have some crazy mortgage or borrowed against a house I didnt own outright to buy luxury items. Its all crazy to me.

  • Redd Tony aka Earth Sign "When everybody thinks alike, nobody is really thinking"

    I dont know why they are faking, they will pass the so called rescue plan…dont play into the emotional roller coaster people…

  • Use Your Head!!!!

    They make crappy automobiles that dont sell, but all of u people want to give them your tax money to bail them out. CRAZY!! If I own a business that sells a crappy product should all of you people give me your hard earned tax money to bail my business out just to save a few jobs. HELL NO!!! You want your business to go well, then sell me a good product at a fair price!!!! This has nothing with rep. or dem. this has everything to do with crappy business. USE YOUR HEAD!!!!

  • Use Your Head!!!!

    LADY ARCHITECT is using her head. Since you all are a bunch of sheep that heard up and just believe what you are told without research, please heard up and follow LADY ARCHITECT!!

  • Redd Tony aka Earth Sign "When everybody thinks alike, nobody is really thinking"

    Understand this people, you cant really blame the CEO’s, the Board of Directors of these companies APPROVED their salaries…The amount agreed is based on future loans and profit that the The Big Three would make…They are in this mess because of the MORTGAGE LOAN crisis…Not because they are greedy…They cant get a loan to survive, its as simply as that…They seemed to be doing fine before the Mortgage Crisis…

    Sheeit, if my salary is $15,000,000,000 a year, best beleive ima fight for what was promised to me..

    @Use your Head

    hahahha..they do make crappy cars though…

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