The auto bailout could be in trouble, according to CNBC’s John Harwood.
All day Wednesday, Republicans expressed grave reservations and threatened to block the bailout in its current form.
Then, around 5pm, word from Washington suggested that Democrats might need 60 votes to break a Republican filibuster and that they didn’t have the numbers.
According to Harwood, it’s even possible the bill could be defeated then resurrected much like the TARP plan.
The current plan before Congress involves direct bridge loans to help automakers retool factories and make more fuel efficient cars. In return, carmakers would give the government an equity stake equal to 20 percent of whatever is borrowed.
Any loans are intended to carry the companies through March 31, after which more help would depend on the quality of restructuring plans submitted to the government.
A White House appointed trustee, or "car czar" would enforce a myriad of conditions and judge restructuring, including the fairness and depth of concessions from labor, management, bondholders, vendors and lenders.
Fast Money viewers have a wide range of opinions on the proposal. Ray T. from Indiana writes, "We are loaning the auto companies $15 billion to keep them open for the next 4 months to make 3 million cars we don't want. That is $5000 for each car we don't want. That is ABSURDITY in spades."
However, Felix C. feels quite differently. He tells us, " I worked for GM for 30yrs, both Ford and GM have made tremendous changes over the last 3yrs. After 2010, and going forward when everything they have worked for is in place, they are going to be money machines!
And that leads to our Fast Money Reader Poll. Do you agree with the government plan to provide the automakers with $14 billion in emergency loans?
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Trader disclosure: On Dec. 10th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (SDS), (MSFT), (WMT), (MCD); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Seymour Owns (AAPL), (BAC), (F), (MER); Seygem Asset Management Owns (EEM), (FXI), (RIO); Finerman's Firm Owns (DSX), (DEO), (MSFT), (MO), (PM), (RAI), (DVN), (DYN; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (COF), (GNK), (SPG), (USO); GE Is The Parent Company Of CNBC
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