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Text size [+][-]  Monday February 8 2010GLOBAL EDITION

Considered view
12 Dec 2008 12:12

Hitting the wall

Context News

The US Senate failed to agree on the proposed $14bn bailout of US automakers on December 11.

General Motors and Chrysler sought billions in aid to see them through March and have warned of potential collapse if they did not receive a bailout.

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US failure to approve $14bn of aid for its Big Three carmarkers does not make their bankruptcy inevitable, even if it’s the least bad option. But political paralysis will have everyone bracing for a traumatic collapse. The knock-on effect on consumer confidence will be dreadful.

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More stories by:  Edward Hadas






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