Auto Bailout fails again – Again, Good.

The auto bailout bill looks dead for now. It failed Cloture which means it probably won’t be brought up again this year.

Proof that this is all about saving the UAW?

A $14 billion emergency bailout for U.S. automakers has collapsed in the Senate after the United Auto Workers refused to accede to Republican demands for swift wage cuts.

The UAW refused to budge because they’re in a lose/lose situation.  They lose if Ford, GM and Chrysler go into bankruptcy.  They also lose if they lower wages to match the non-union workers in other auto plants.  The union’s only hope of maintaining power was to convince the politicians to subsidize them at taxpayers expense.  

Hopefully the “little three” will take a serious look at restructuring now, when it will do the least amount of damage.  Waiting will only make it worse.

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0 Responses to Auto Bailout fails again – Again, Good.

  1. Hal says:

    I could see the immediate reaction of the news in real time on platinum. It’s tied closely to the auto industry and it nose dived from around $840 an ounce to around $817 an ounce when the news of the failure hit.

    So tomorrow’s dow should prove real interesting. I can’t say as I’m surprised. I think most Americans are fed up with the unions and the idea that a company is “too big to fail” because of bad decisions one after the other.

  2. Natasha Call says:

    I appreciate your post about the auto bailout. I feel that we are being directed into nationalization and socialization. The real American dream is about to vanish because there won’t be any motivation to achieve if you don’t have to work and can get the same amount of money as someone who does work. I look forward to reading many more interesting posts from you. I have added you to my links on my site at and have fav’d you on Technorati. I hope you’ll add me to your blogroll. Thanks for the greatly informative post!