The AP reports that as of last night, chances of a GM/Ford/Chrysler bailout by the American people have diminished.
While automakers want the taxpayer-funded cushion to get through a “bleak and dangerous December,” members of Congress have been attacked by their constituents for agreeing to the previous $700+ billion Wall Street bailout. Apparently, “Bailout fatigue has set in” on Capitol Hill.
GM has already said that without a bailout, it will run out of cash by year’s end. Democrats pushing a bailout stated in legislation put forth on Monday that the auto industry employs 355,000 workers directly, one million retired dependents, and 4.5 million in related industries. However, does this separate out foreign automakers from domestic ones? The 4.5 million employed in related industries surely benefit from Toyota and Honda as well. Toyota and Honda might not do as well if their competitors are propped up.
A bailout of sorts was already approved in September, consisting of loans for the auto makers to develop alternative energies. Republican leaders want to lift the restriction on that money and give it to the automakers, while Democrats want to keep the previous allocation and add another $25 billion, meaning $50 billion in total for automakers.
Senate leaders don’t think that, as of this time, the auto bailout has enough votes to pass and are holding the bill until they can get a required 60-vote supermajority in the Senate.

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