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Behind The Wheel

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Dec.12

9:37 AM ET

Friday, 12 Dec 2008

Who's To Blame For Failure Of Auto Bailout?

Posted By:Phil LeBeau

Sectors:Automobiles and Parts

Companies:General Motors Corp | Ford Motor Company

Bailout Denied
CNBC.com
Bailout Denied
"Karnac the Magnificent" I am not. Heck, for weeks I've been predicting Congress would ultimately come up with a bailout for the Big 3. So after the Senate shot down the aid package last night, it's no wonder my wife said to me, "Gee Einstein, guess you were wrong about what would happen on Capitol Hill."

I may not be Einstein, but I can tell you that there is plenty of blame to go around for this bailout not happening.

• Congress
Between the Democrats in the House messing around with a bill that lacked focus and the Republicans digging in and demanding immediate wage concessions, this was a sloppy process. Throw in the lack of leadership in both parties to steer this process, it produced another example of Congress bungling a crisis.

• The Big 3
Starting with the inability of the companies to articulate the need for a bailout, these companies have mucked up chance after chance for aid. The CEOs flew into DC in corporate jets to ask for billions. Then lacked detailed plans when asked how a bailout will help them survive.

• The UAW
I give the union credit for saying it's ready to make concessions, but these guys should have moved faster on Capitol Hill to win over Congress.

• The White House
The Bush administration has shown it has zero pull on Capitol Hill. The Treasury Secretary could give Detroit the money through TARP, but the President doesn't want to do that. What do you want Mr. President.

Oh I know that many of you will e-mail me with your pick for biggest villain in killing the auto bailout. Some of you will say I'm missing the point. That's fine. Here's one point nobody will miss. We are now closer to seeing the Big 3 go bankrupt, and If that happens, it will be a messy, messy event.

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