Big Three Bailout Done Deal

Yesterday, the interest rate on short term Treasuries dropped to zero percent. The markets are nervous. One factor driving that fear was addressed today. Congressional leaders and President Bush have reached agreement on a bailout bill for the Big Three auto makers.

Congressional Democratic leaders and the White House have finalized a deal to spend $15 billion on emergency loans for struggling U.S. automakers, congressional officials said Wednesday.
The White House did not go quite so far, saying it has made "very good progress." The measure could see a House vote later Wednesday and be enacted by week's end.

It would create a government "car czar" to dole out the loans, with the power to force the carmakers into bankruptcy if they didn't cut quick deals with labor unions, creditors and others to restructure their businesses and become viable.

Congressional Republicans, left out of negotiations on the package, are expressing grave reservations and may seek to block it.

The bill is likely to pass despite a Republican filibuster attempt.