(WASHINGTON, DC) - It appears the Detroit auto bailout...needs a bailout.
Our partners at Fox News report the emergency loan package for GM and Chrysler failed to pass through the United States Senate on a 52-35 procedural vote to defeat a filibuster. The proposal needed 60 "yea" votes to be considered in the Senate.
That puts Detroit in a really bad position now.
Both General Motors and Chrysler said that they needed the allotted cash to get through the end of this month, and General Motors, at least, said that they had already hired bankruptcy advisors.
Daniel Howes, columnist for The Detroit News speculates the move was an effort by Senate Republicans to get "payback" against the United Auto Workers union, especially considering their lopsided financial support of Democrats.
Right now, it appears there are two options remaining: bankruptcy, or an executive order from President Bush ordering Treasury Secretary Hank Paulson to release the $14 billion in loans from the Wall Street bailout package.
Both Indiana Senators Evan Bayh and Richard Lugar voted in support of the bill.
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