Perhaps I am missing something, so I am going to lay out the auto industry story in my words, and let you share your take on it.
After reading the paper, here is how I understand the current situation:
– The Big Three went to Congress asking for a bailout.
– The Big Three were humiliated because they flew in private planes.
– The Big Three came back to Congress with plans and commitments on how they would use the bailout money, if granted.
– The House approved the bailout.
– The Senate ended up shutting down the talks and not approving the bailout because the UAW would not agree to decreases in wages, that would bring wages in line with what Toyota pays it’s employees ($48/hr).
So, as I understand it, the UAW shot themselves in the foot by killing the deal over their wages, but now may not have jobs at all, if a new agreement cannot be reached.
UPDATE: Washington thinking of loaning some money.