The Senate did not pass a $15 billion rescue plan for Automakers this past week and the White House is now considering allocating some the Wall Street bailout funds to shore up the U.S. auto industry, which according to many analysts is on the verge of bankruptcy. Currently approximately $15 billion of the Wall Street bailout fund is not committed to anyone; but to dip into this fund for automakers, the White House administration would be required to notify Congress of its intentions. Congress has the power to block usage of the Wall Street bailout fund and/or to put special conditions on how the money can be used to help the faltering auto industry.
The auto industry is very vocal about their precarious financial position, declaring that they may have only a few weeks before they run out of money and go bankrupt. Any type of collapse or bankruptcy of even one of these big automakers could spell disaster for America’s economy. The major automakers employ almost 25 million workers and it is estimated that more that 3 million Americans would be out of work if even one of automakers declared bankruptcy.