The House had decided earlier in the week to step in and help the Big Three with a $14 million bail out.
Republicans demanded concessions before conceding to requests to help keep the major three automobile manufacturers from declaring bankruptcy. They had stated that the House Bill that was passed this week set rules that weren’t strict enough.
Despite a negotiation behind close doors, Harry Reid decided to force a decision on Thursday evening. He went on the Senate floor requesting a vote. The Senate members were unable to obtain the majority of 60 members required to pass the bill over objections made by Republicans.
Reid declares that Wall Street will react badly to the decision made tonight, that jobs will be affected and that it will be a difficult Christmas for many people. He stated that he believes that General Motors might collapse, although it’s reported that President Bush could use the Wall Street bail out money to help the automobile manufacturers.
Tonight, after the decision was announced, the Asian markets dropped 7%. Worries are that the consequences to American markets will be even more severe when Wall Street opens up for business on Friday.