Auto Bailout Fails in Senate, Bush May Use TARP Money

[Matt Molnar]

Bush changes mind, may save auto giants
By MIKE ALLEN | 12/12/08 9:36 AM EST

Facing the potential bankruptcy of iconic American firms, President Bush on Friday abandoned his longstanding objection to using using the Wall Street bailout fund to help save G.M., Ford and Chrysler.

A frustrated Republican congressional official said: "If only they had said this last week, we could have saved ourselves a full week."

Ten hours after the Senate rejected a separate lifeline for the automakers, White House Press Secretary Dana Perino said in a statement it would be "irresponsible" to let the companies crash. So she said Bush will "consider other options," including the $700 billion Troubled Assets Relief Program that Congress created for the Treasury Department in October. [Full Article]

[NIKV69]

Surprised, this money will just be wasted. The UAW wants everything to stay the same as far as wages and benefits and that just can't happen for GM and the others to to rebuild. Bankruptcy is really the only option here.