“I dread looking at Wall Street tomorrow. It’s not going to be a pleasant sight.”

Here we go.

Dec. 11 (Bloomberg) -- Senate negotiations for a U.S. automaker bailout plan collapsed, in a blow to General Motors Corp. and Chrysler LLC, which may run out of cash early next year.

“It’s over with,” Majority Leader Harry Reid said on the Senate floor in Washington. “I dread looking at Wall Street tomorrow. It’s not going to be a pleasant sight.”

Reid said the Senate will take a procedural vote tonight on a House-passed plan, though he doesn’t expect it to be approved.

“This is going to be a very bad Christmas” for many people, Reid said. “The time for talking on this is over. We should vote and move on to something else.”

Asian stocks and U.S. index futures immediately began falling after Reid’s comments. The MSCI Asia Pacific Index slumped 2.2 percent to 86.13 as of 12:33 p.m. Tokyo time, while March futures on the Standard & Poor’s 500 Index slipped 3.4 percent.

Connecticut Democrat Christopher Dodd, who was involved in the negotiations, said the final unresolved issue was a Republican demand that unionized autoworkers accept a reduction in wages next year, rather than later, to match those of U.S. autoworkers who work for foreign-owned companies, such as Toyota Motor Corp.

“More than saddened, I’m worried this evening about what we’re doing with an iconic industry,” Dodd said. “In the midst of deeply troubling economic times we are going to add to that substantially.”

Republican Bob Corker of Tennessee, who negotiated with Dodd, said, “I think there’s still a way to make this happen.”


bloomberg.com...

And on top of that.....

More jobs carnage: 573,000 file for unemployment

By CHRISTOPHER S. RUGABER – 4 hours ago

WASHINGTON (AP) — New claims for jobless benefits surged last week and came in worse than expectations that were already gloomy — and economists say the figures would get even worse without an auto industry bailout.

REST HERE

.

Not pretty in places where it's already tomorrow...



live link
.



[edit on 12/11/2008 by Gools]

52 yea votes on the auto bailout. 60 were needed.

The Senate appears to be adjourning. They will not reconvene to vote until January.

Dow 8,254.00 -316.00 -3.69

DOW Futures.

Vote fails.

Stocks fall.

People go "ZOMG YOU SHOULD HAVE PASSED IT!!"

House makes a new bill twice as large and packed with pork, passes, people cheer, stocks rise.

Reactionary Economics.

reply to post by anachryon


I honestly think they will call a special session .... GM WILL file for Bankruptcy before the end of the year...

Originally posted by Rockpuck
I honestly think they will call a special session .... GM WILL file for Bankruptcy before the end of the year...

They'll pull the money from TARP so there's no pesky UAW rules if anything. Reid conceded failure on the bill. I think there's a good chance GM could file Monday at 12:01am at this rate.

Futes are approaching limit down levels...if I recall correctly, 6.5% is the magic number.

GM will probably start filing TOMORROW

I would HATE to live in Michigan right now.

IF the pitchfork revolution ever will begin, I'll bet it starts there

Originally posted by Rockpuck
Dow 8,254.00 -316.00 -3.69

DOW Futures.

Vote fails.

Stocks fall.

People go "ZOMG YOU SHOULD HAVE PASSED IT!!"

House makes a new bill twice as large and packed with pork, passes, people cheer, stocks rise.

Reactionary Economics.

You're right. I think this entire year has been orchestrated. The theatrics are so over the top, it has to be made up!

Economic warfare. A mind game to divest us of our assets.

No, Bush the Decider, will order Paulson to get the money for them from TARP. This was all a big show of political posturing. If the UAW really was worried about jobs, they would have agreed to the wage cuts demanded by the Republicans in the Senate.
Act II starts tomorrow. Doesn't anyone else get sick of these Reruns? How about something new for a change? Isn't rerun season over?

reply to post by ProfEmeritus


“I think that is where they go next,” Thune said. “I wouldn’t be surprised if they explore all options.” The Bush administration thus far has opposed that option

.

reply to post by TrainDispatcher

The Bush administration thus far has opposed that option

Yes, they have, but Bush seems intent on thumbing his nose at the Republican Party, for some reason, so I feel fairly certain he will ok it.

reply to post by ProfEmeritus


You cannot really pull the money from TARP .. the FED has advised the Treasury already the funds should be used for banks.

Granted, GM is trying to use it's finance arm to become a Bank Holding Company, the Treasury said you have to meet guidelines to be a bank.

So far GM has failed to reduce debt (it's grown) and has failed to raise capital (sure as hell won't be raising any now..)

Not to mention Bush is against bailing these people out.. the company is Defunct.

If it doesn't come from Congress, I do not see it getting bailed out.

It might be sold? .. Maybe to Toyota or Honda, maybe even Ford who knows..

I honestly hope the Gov decides .. hey.. we did what we could but there is no stopping the beast.

Let Free Market policies guide us to CORRECTION.

Likely hood of the WORLD escaping a global Depression is highly unlikely at this point ... 12months into a recession at that.

USD v. Yen is tanking hard.

This doesn't bode well at all.

reply to post by Rockpuck

I honestly hope the Gov decides .. hey.. we did what we could but there is no stopping the beast.

Let Free Market policies guide us to CORRECTION.

Look, I absolutely agree with that philosophy. I have stated that in every thread that I create or post to. However, I have seen time and again, Bush siding with the Socialist-aligned Left-leaning Congress to thwart the free enterprise system, and I'm afraid that he won't stop now. As I said before, Bush seems intent on screwing every free market principle of capitalism in the last several months, perhaps because he feels the Conservatives abandoned him. Of course, he is delusional, since it is HE who abandoned Conservative values, assuming of course, that he really ever had any to begin with. It's not hard to conclude that it was all a big act to get elected.

reply to post by anachryon

USD v. Yen is tanking hard

Yes, it's below 90 for the first time in quite awhile.

[edit on 11-12-2008 by ProfEmeritus]

GM has 15.90 BILLION in Cash
GM is 45.16 BILLION in Debt
GM is paying 2.9 BILLION a year in interest

What is a few billion dollars going to do?

Do you honestly think that they could pay this back?

Would you give them money if you all had it?

reply to post by ProfEmeritus


Bush is not an economist.. he does what his advisers tell him to. Ironically (or not?) his advisers all come from failed banks.

They are the same advisers to Barrack ..

They are public puppets.. I really don't think Bush is sitting in his office plotting how to side with Dems next..

Though I will say the entire Republican party is more Democratic any more.. but I digress..

reply to post by TrainDispatcher


True true, I wouldn't loan a penny! ..

I hope Ford really is as well off as they claim .. Don't really care about Chrysler, their cars are such POS's anyways.

reply to post by TrainDispatcher

Do you honestly think that they could pay this back?

Would you give them money if you all had it?

I know. Every time I look at their financials, I think of the store owner who is approached by a disbelieving customer who asks him how he can sell steak at 79 cents a pound, when it costs him $1.29 a pound at wholesale. The owner replies that he'll make it up in volume.

Maybe GM thinks they even though they're losing on every car sale, if they sell enough of them, they'll make it up in volume.