Auto Bailout Collapses

Not long after it appeared that Democratic and Republican senators had begun to agree on the terms for a bailout of U.S. automakers, the deal collapsed. The $14 billion emergency bailout stalled when the United Auto Workers union refused to wage cuts that would have brought their pay in line with that of Japanese automakers. The UAW was reportedly willing to make the cuts, but not until 2011. Senate Majority Leader Harry Reid said he was "terribly disappointed" about the demise of the emerging bipartisan deal. He also said that the bill's collapse was "a loss for the country," adding, "I dread looking at Wall Street tomorrow. It's not going to be a pleasant sight." Asian stocks have already started to slide on news of the breakdown.