No Bailout For Big Three (Yet)

In a rare and no doubt temporary example of Washington politicians actually showing some balls for a change, a $14 billion bailout deal for America’s three major automotive manufacturers fell apart late last night.

“It’s over with,” a dejected Senate Majority leader Harry Reid told reporters after the talks broke down.

Predictably, it was union demands which derailed the agreement, as the United Auto Workers refused to adjust employee wages to mirror those paid to American workers at plants owned by foreign car companies like Toyota and Nissan in a timely fashion.

Now, it appears that the “Big Three” will move to tap federal funds already approved under the massive $700 billion bailout approved in October, a move which the Bush administration favors.

From the Wall Street Journal:

The collapse of the talks represents a major defeat for three companies and an auto union that once wielded immense political clout. Even after two appearances in Washington by the GM, Ford and Chrysler CEOs, and a show of solidarity with the UAW, the auto makers were unable to convince many skeptical lawmakers to change their minds and support a bailout.

Only a handful of Republicans in the Senate had been willing to support the rescue package. Some raised concerns about government intervention in the marketplace. Others demanded the bill be strengthened to exact concessions from the industry.

Congress also remains bitter over the handling of the $700 billion financial rescue, which lawmakers on both sides feel they were pushed into approving and are displeased with the results.

Wait … Congress is displeased with the results of its own bailout? A bailout that its leaders told us was “absolutely necessary” if we were to prevent our nation from experiencing an “economic Pearl Harbor?”

Forgive us for being blunt, but when you unconstitutionally allocate unlimited funds to an incompetent administration with no plan, no precedent and no accountability, what exactly did you think was going to happen?

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