Although it is clear that there is desire to prevent the auto companies from failing, talks are not going as positive as the auto makers hoped.
"Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms," the White House statement said. "However, given the current weakened state of the U.S. economy, we will consider other options if necessary -- including use of the TARP program -- to prevent a collapse of troubled automakers."
"A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time," the statement said.
Basically, the disagreements in the senate have to do with differences between the wage cuts for auto workers. This led to the dismissal of help from the $700 billion Troubled Asset Relief Program (TARP) and the $14 Billion relief plan that was being discussed for the auto makers. Democrats and Republicans relaxing in their modern furniture during the debates just can't come to an agreement.
"We're not going to get to the finish line. That's just the way it is. There's too much difference between the two sides," Senate Majority Leader Harry M. Reid (D-Nev.) announced after 10 p.m. yesterday, concluding a marathon negotiating session that ended in gridlock.
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