OMG - Auto bailout collapses in Senate - Bankruptcy Next?

Wow... that's a huge headline! That can't be good for the economy.

Society the way we know it based on the automobile. Who walks anywhere any more... we as a society drive EVERYWHERE!

Discuss the Auto Bailout Failure Now

Aside from General Motors and Chrysler declaring bankruptcy, there are going to be many other jobs lost.

The car companies have had such strong auto lobbyists in Washington to help them get what they want. I guess they didn't get what they really needed.

Ultimately if we're based on free enterprise system, I believe that letting the car companies declare bankruptcy will force them to come up with a viable business solution. And they'll have to do it quickly.

Bankruptcy means that the auto companies can't lobby for more help. They lobbied for loans on TV and lost. They've bared their soul to the U.S. govt and lost. Now they'll have to do what real businesses do. They'll have to restructure their business as a real business.

American's Are Overextended Credit Wise
The only problem with the auto industry right at the moment is that Americans are in over their heads debt wise. Cars these days are built pretty well. They're good quality.. The problem is that the industry is based on credit. Cars are bought on credit. The car companies make expensive cars that must be purchased on credit.

Until the U.S. consumer can pay down their existing debts and save some money, the auto industry is going to be depressed.

In some ways, maybe this is good for the American Economy.

I hope that this doesn't affect the Canadian economy as bad. Canadians have been more prudent than Americans, but we are in debt as well.

Auto bailout collapses in Senate - CNN
Negotiations to bring measure up for vote fall short, possibly dooming GM, Chrysler to bankruptcy.

DETROIT'S DOWNFALL

* Auto bailout collapses in Senate
* Bank bailout funds could be used for Detroit
* GM hires bankruptcy lawyers - report
* Auto bailout ABCs
* Senate edges closer to auto bailout deal

NEW YORK (CNNMoney.com) -- Hopes for Congressional approval of a bailout of the U.S. auto industry fell apart late Thursday night as Senate leaders said Democrats and Republicans were unable to reach a deal that could get the bipartisan support needed to bring the measure for the vote.

The Senate voted 52-35 to bring the measure for a vote, but that was short of the 60 votes needed to advance the legislation. The failure followed the collapse of negotiations between Senate Democrats and Republicans seeking a compromise that all sides could accept.