Auto Bailout Stalls in Senate

Auto Bailout Dies In Senate
Associated Press

Washington, D.C. -- A $14 billion bailout for Detroit's struggling Big Three has died in the Senate after failing on a procedural vote.

The collapse came after bipartisan talks on the auto rescue broke down over GOP demands that the United Auto Workers union agree to steep wage cuts by 2009 to bring their pay into line with Japanese carmakers.

The last hope for the struggling U.S. Auto industry to avoid imminent collapse may be President George W. Bush.

In fact, House Speaker Nancy Pelosi says the president is the "only viable option" after Republicans led the charge to defeat a bailout plan in the Senate last night.

Senate Majority Leader Harry Reid is among those dreading the open on Wall Street this morning since, in his words, "It's not going to be a pleasant sight."

Things fell apart when the auto workers' union refused to give in to Republican demands for aggressive wage reductions before their contract is up.

And while the Bush administration has long argued the $700 billion Wall Street bailout fund should only be used for the financial sector, that or bankruptcy seem to be the only choices left. The White House says it's studying its options.