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The auto-rescue package has failed. The Senate held debate on the 14 billion U.S. dollars bailout plan for carmakers, automobile manufacturers, recently flew its executives in Washington in their private jets to the government asking for a handout.

The Senate has voted

Our representatives in Congress have acted as they should. The vote on Thursday, 11 December 2008 on a procedural motion (whether or not they should proceed to the bill) were required among the 60 votes (3 / 5) to move forward. And theyare fixed, at least until January when the new Congress convenes.

When Harry Reid, Democratic Senate Majority Leader, said Thursday evening: "It's over."
Later, he said with a wry smile, "I'm afraid to look to Wall Street tomorrow. It is not a pretty sight."

The last time Congress failed, adopted a rescue plan was that most of the pass was a foregone conclusion, the Dow Jones Industrial Average (DJIA) fell 777 points in one afternoon.

The DJIA was up more than 64 heldPoints on Friday, quoting the impending bankruptcy of the largest U.S. automaker was not an issue for investors.

Senator Reid added: "I hope that would be the president, who have worked so well with us in recent weeks, this law now consider the TARP money to help the auto industry and workers in this country. I hope that they would consider doing that tomorrow. "

TARP Funds

The White House has reported that she would go with some considerationThe 700 billion U.S. dollars TARP initially approved money for the rescue of the financial system of the automotive industry to keep alive artificially until the new Congress convenes and the new government moves, but it was given no timetable.
President-elect Barack Obama is in favor of assistance to the automotive industry.

After the bailout collapse on Thursday, a spokesman for the Ministry of Finance reported that the funds were designated only contribute to the financial sector. Congress has set a law for the year 2008, and it canobliged to HR 1424 (), the 700 billion U.S. dollars before you tap it to change for any other purpose.

The Troubled Assets Recovery Program (TARP) is the 700 billion U.S. dollars bailout plan for financial markets, passed in October. All but 15 billion U.S. dollars of the first 350 billion U.S. dollars has been paid to distressed banks and insurance companies, and the Treasury by immersion in the second 350 billion U.S. dollars, without any formal notification from Congress excluded.

Rebellion

Republican legislators haveinto open rebellion with the White House on the Auto-rescue package. Although the president supported the law passed by Parliament, Republican lawmakers held the line on the automaker restructuring their debt and bring its employee compensation in accordance with the foreign car manufacturers before the money is given them.

Senate Republicans want the automakers receive no taxpayer money because they would do nothing against the mismanagement of the industry properly and only postpone the inevitableBankruptcy. But they will not be responsible for adding hundreds of thousands more Americans to the unemployment rolls.

The voice of the Senate against the law were from southern states with foreign car manufacturers use their citizens.

The failed bill had intended to take the 14 billion U.S. dollars from a green modernization fund, ended earlier this year with the money already appropriated for automakers. The green modernization funds authorized up to 25 billion U.S. dollars for low-interestAuto loans for retrofitting older plants, even if the cost of moving for a complete range around the 200 billion U.S. dollars.

Independent public opinion polls show the majority of Americans against the auto industry bailout by a small margin.

The real question

Wages to employees of the American automobile manufacturers are paid about the same as the foreign companies, about $ 30 per hour. Over the years, the United Auto Workers (UAW) union negotiated major benefits for their members,Although loss of market share has weakened the domestic automakers, is increasing total spending on its members' hourly rate for GM to $ 69 for active employees. The foreign companies a total of $ 48 per hour. These figures include wages, health care and pensions.

GM alone, for example, has 432,000 retirees and spouses, for which they pay for health care and pension system, while the foreign companies is much less retirees and retirees have slim advantage.

The advantages

It is reported that for $ 10per month, with a $ 250 deductible, UAW members and retirees will receive comprehensive medical, prescription drug, hospital and surgical coverage.

When the workers are released by plant closures or reduction of the workforce, they are transferred to the UAW jobs bank for up to 48 weeks. You can stay home and collect 85% of pay (less unemployment benefits), or they spend their days at the local union hall for 100% of pay (less unemployment). The workers in the Union Hall are sometimes askedto run errands, perform small tasks in the system, or perform community service.

The health benefits add $ 1200, the cost for each car, and the Jobs Bank adds $ 200.
The additional costs have prevented the big domestic automakers compete in the small and medium-sized car market, so they concentrated their niche on trucks and large SUVs, where she was taken to make a profit - until the oil is $ 140 per barrel and dealers with unsold cars overcrowded.

The UAW is the treatment ofthis as if it was not their problem.

It is their problem if the car manufacturers rewritten file in bankruptcy court and the judge orders in favor of workers' contracts on competitive terms.

Bailout financing without making further changes would keep the costs at the same level, and only serve to move a little further in the bankruptcy period.

The problem in Congress, that the UAW has to spend thousands of volunteer hours and more than half a billion dollars in membership fees to ensure thatCongress is mostly democratic, and now they are calling in their bonds.

UAW killed the bailout

The three major automakers have desperately AXING thousands of jobs and closing plants, by a lack of demand for the fuel inhalation powered SUV that their sources have been of great benefit.

However, the UAW killed the adoption of the law, if union leaders had insisted they did not renegotiate wages and benefits until 2011, when their contracts expire. CongressionalNegotiators offered any date in 2009, and the union refused.

You think this is a normal collective bargaining.

They just do not get it.

Victims

The auto workers do not see the $ 69 per hour. You go to work every day and take home their $ 30 per hour to run, and if they lose their jobs, the salary is in danger. You continue to have their pay for almost a year (received so far), and health insurance benefits for 48 weeks.

But then?

Bankruptcy

The BigThree car manufacturers employ about 250,000 people. Suppliers employ about 100,000. One in ten U.S. jobs to the auto sector with common suppliers and vendors committed, adding up to approximately 2.5 million jobs to be affected from the domino effect of the automobile industry insolvency.

GM and Chrysler have hired outside consultants to explore the bankruptcy option. Your date is January 2009. Under Chapter 11 of the automobile manufacturers will be forced into a restructuring plan, and still producetheir products, while the shift in payments to creditors. Under these circumstances, the automakers will be forced to be profitable, or go bankrupt. And benefit workers' contracts will be secure with a court order to be rewritten at competitive rates.

Car prices are likely to increase, will be adjusted on some models, the companies will scramble to increase the fuel consumption of the other models, and the benefits of 31 billion U.S. dollars available to plant geneticModernization.

The bankruptcy is not such a bad choice, but it depends on where you stand in this picture.

If you are a consumer, would you buy a car that can be sold, where its resale value of scrap metal and parts are going to be hard to find?

If you cut a supplier, and your income, or delayed as a car manufacturer are provided bankruptcy, you can stay in business, you're willing to extend loans to the bankrupt company?

Hired auto workers will likelycontinue on their wages, but the benefits will be a big hit. Healthcare will certainly be restructured to be compatible with other major diseases have plans. Existing pensions will remain intact, no doubt, but the future contributions of active workers will be cut.

The Jobs Bank will be killed immediately.
The UAW has admitted to "suspend Jobs Bank program effective December 2008.

This is the worst news for the thousands and thousands of workers excessedthat must exist now on unemployment until they can find work in areas where everyone is looking for work. This in turn increases the home foreclosures and bankruptcies in the badly affected areas of the country.
Perhaps Congress can use the next president, financial resources for jobs in these areas offer shock. This mechanism would be sure.

Nancy, the blamer

Always having the last word, blame Nancy Pelosi, Democratic Speaker of the haveHouse was certainly more verbal, to do what they do best, have voted to reproach Republican senators, "no."

Their statement, released at midnight Thursday, builds its own merits, with a short list of the bill, as it keeps saving the world through cooperation, using terms such as "bipartisan protects taxpayers ... ... ... environmental standards has high accountability ... measures to ensure their (car company), the long-term profitability and competitiveness.... demanded concessions from deep ... executives, shareholders and the union. "

She goes through their fingers on the Senate Republicans' refusal of both parties right ... ... in good faith with the White House, the Senate and the car manufacturers to support negotiated.

She throws them also as "irresponsible, especially in a time of economic difficulties." She adds that the fear of threats, "... failure ... devastating consequences for our economy, to the detriment of workers andharmful to the American automobile industry ... unless ... "

Now she thinks she should run the country by the President to do what that "... unless the President shall immediately Paulson to other short-term financial support, including TARP and explore the possibilities of the Federal Reserve. "

Then slams the door to a different course of action, but theirs. Your word is final. "This is the only viable option available at this time."

For the full yearDisclosure, Nancy, three Republicans sided with 31 Democrats in opposition. Harry Reid and "No" vote on procedural grounds. Has he a Republican?

One question, if negotiated with the Senate, Nancy, why did they vote down the bill?

I can picture her and stamped her foot down, Wheeling Around and marching out of the room. I wonder if they only bought a GM car.

Side note: I do not like arrogance. She has a good speechwriter. I like the alliteration of 'devastating ...Disadvantage ... destructive ".

I guess Nancy finger-pointing is now President Bush, because he can give what she wants. Not like last July, when she asked the President "a total failure, losing all credibility with the American people about the war, the economy, energy, name you as the subject" and that Congress had "swept to his Chaos over and over and over again. "

One last question, Nancy, the UAW has contributed to your campaign?

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