Bad Day For Bailouts
Things fell apart today in the Senate - there will be no bailout, with Harry Reid suggesting “it’s over with” until January. From the WSJ:
The talks, which appeared close to a deal several times, broke off due to a sharp partisan dispute over the wages paid to workers at the manufacturing giants.
General Motors Corp. and Chrysler LLC, which have said they can’t last the year without federal aid, both hope the White House will now relent and allow the Treasury to provide emergency loans from the $700 billion Wall Street fund, people familiar with the matter said. Mr. Reid also urged that option.
To date, the administration has resisted the idea. But “that may be where they go next,” said Sen. John Thune (R., S.D.). There is always a chance Congress will act sooner if one of the companies totters on the brink, although that possibility appears remote.
