On Capitol Hill, talks between Democratic and Republican Senators on a $14 billion auto industry bailout have collapsed. General Motors and Chrysler have warned of imminent bankruptcy unless the government steps in. The talks broke down over disagreements on the timing of wage cuts to unionized auto workers.

Senate Majority leader Harry Reid: “We have worked and worked, and we can spend all night tonight, tomorrow, Saturday and Sunday, and we’re not going to get to the finish line. That’s just the way it is. There’s too much difference between the two sides.”

Both sides agreed wages should drop to the levels of foreign competitors, but Republicans wanted a deadline of 2009. Democrats insisted on a date of 2011, when current worker contracts expire. Alan Reuther of the United Auto Workers said, “Unfortunately, Senate Republicans insisted that workers and retirees be singled out and treated differently from all other stakeholders. This is what ultimately led to the breakdown of the negotiations.” Democratic lawmakers are now urging the White House to use some of the remaining Wall Street bailout money for the auto industry.