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20 November 2008

Auto Bailout Support Disappearing

Congress has scrapped the vote on the bailout for automakers due to a lack of support for the bill. Lawmakers want to see a plan before they are willing to give money to the industry. The House expects to reconvene in December to take up the issue.

In Anna, Ohio near a thriving Honda auto plant, citizens say Congress should not give the Big 3 bailout money. They say the companies should be allowed to go into bankruptcy. September Quinn, a waitress at the Inn Between says there is "something not right in the way they running their business, why should the American people have to bail them out if they can't figure out how to do it right?"

For the time being automakers are going to have to wait to see what Congress decides to do. There is a growing consensus that despite the cries for help and the warnings of societal catastrophe from the prophets of doom, that it may be better to send the companies into bankruptcy, allow them to restructure labor contracts and re-emerge stronger, more efficient companies.

Car makers shares managed to hold on to rallies they enjoyed as news of a possible bailout emerged, but the stock market sank to new lows as the two day sell-off seems to gain momentum.

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