Auto Bailout: DENIED!
After going back and forth with congress, the auto bailout has been denied. According to Business Week , a major factor in this bailout not passing was the United Auto Workers (UAW) refusal to budge with regards to lowering pay and benefits. UAW and congress could not come to an agreement with regards to this touchy subject matter.
According to Business Week, “The bill called for $14 billion to be divided between GM and Chrysler, both of which are at the financial breaking point as the recession and consumer credit crunch have crippled their finances. The companies, anticipating failure in the Senate, have hired bankruptcy law firms. Ford (F) has said it doesn’t need federal assistance now but has asked for a $9 billion line of credit in case sales deteriorate below the current level.” Let’s see how this affects the stock market today.
Leadpile Lead Exchange is keeping a close eye on this situation. Not only does the auto bailout situation affect us directly with our auto finance leads, but it also affects other financial related lead types that we are generating. A bailout not passing is going to affect lots of Americans potentially who are some how linked to this industry. What is going to happen to their financial situation and their jobs? So is bankruptcy the next answer to this denied auto industry bailout??? We will see……