After the auto bailout fails - WKOW 27: Madison, WI Breaking News, Weather and Sports

After the auto bailout fails


Washington (ABC) -- Watch out Wall Street!

  It's going to be a rocky ride Friday.

  The 14-billion-dollar auto bailout bill went down to defeat in the Senate late Thursday night.

  And it may now be up to the Bush administration to cast a lifeline to America's auto industry.

  What happens now?

  That's the big question after the fourteen-billion dollar auto bailout package died in the Senate thursday night.

  Senator Harry Reid said, "I dread looking at wall street tomorrow. It's not going to be a pleasant sight."

  Talks fell apart after Republicans demanded the union auto workers agree to salary cuts to equal workers at US plants of foreign auto makers before the UAW's contract runs out in 2011.

  The union refused.

  Sen. Bob Corker said, "we have solved everything substantively and about three words keep us from reaching conclusion tonight."

  Many fear the breakdown is the end of the line for US automakers.

  Congress isn't scheduled to return to work until early January.

  And both Chrysler and General Motors have indicated they could collapse within weeks.

  Now Democrats say it's up to the White House and Treasury Secretary Henry Paulson to use part of the 700-billion dollar financial rescue package to bailout the big three.

  Sen. Barbara Boxer said, "people played Russian Roulette with this recession tonight. We don't know what's going to happen. But we do know that Hank Paulsen can save these jobs."

  Democrats face a tough fight.

  So far, the Bush administration has been cool to the idea of using the financial bailout money to rescue the auto industry.

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