Big Three Look to Bush After Bill Defeated

[cali]

By KEN THOMAS and JULIE HIRSCHFELD DAVIS, AP

General Motors Corp. and Chrysler LLC, which have said they could run out of cash within weeks, have few options left after the dramatic defeat in the Senate of a $14 billion bailout for the domestic auto industry.
Its demise late Thursday prompted immediate calls from lawmakers in both parties for the Bush administration to tap into the $700 billion Wall Street bailout to rescue the beleaguered auto industry. The bill failed after talks broke down over the refusal of the United Auto Workers union to meet Republican demands for aggressive wage reductions.
The Senate rejected the bailout 52-35 on a procedural vote - well short of the 60 required - after the talks fell apart.

"I dread looking at Wall Street," said Senate Majority Leader Harry Reid in anticipation of Friday's stock market reaction. "It's not going to be a pleasant sight."
Indeed, stock markets in Asia and Europe dropped sharply on Friday after getting word of the bailout's failure, and U.S. markets were set to plunge when trading opened. Dow Jones industrial futures were down more than 200 points.
The Bush administration has repeatedly said the Wall Street bailout fund should not be used for emergency aid to the automakers because it was designed to restore stability to the financial sector. Following the vote, the White House said it was studying its options.
"Due to this colossal failure by the U.S. Senate, now it's up to the president and the Treasury secretary," Virg Bernero, mayor of Lansing, Michigan, said Friday on CBS ' "Early Show." "Working Americans will appreciate the president stepping in - and pull us back from the precipice, pull us back from the economic cliff."
Lawmakers, who aren't scheduled to return to legislative work until early January, were looking to the president, as well.
"Plan B is the president," said Sen. Carl Levin, a Michigan Democrat. House Speaker Nancy Pelosi said action by President George W. Bush was the "only viable option."
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http://money.aol.com/news/articles/_a/bbdp/auto-bailout-talks-collapse-over-wages/267666

[tekisui]

1. Yeh. good luck with that.

[cali]

2. he'll do it.

in fact, The WH is already floating it.