Auto Bailout Fails in the Senate

The Senate failed to pass the $14 billion emergency loan package for the Big 3 automakers after bipartisan talks broke down over GOP demands for steep UAW wage cuts in 2009, brining pay in-line with Japanese automakers.

Of the three automakers, General Motors and (NYSE: GM) Chrysler are in the worse shape, with only enough cash on hand to last a few more weeks. Ford (NYSE: F), while it requested $9 billion in aid, is in much better shape, with enough cash on hand to last maybe another year at the current burn rate.

Senate Majority Leader Harry Reid expressed his disappointment, and called the failure "a loss for the country." He also cautioned that Wall Street could be in trouble tomorrow following the bill's collapse.

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