The WSJ is reporting that the auto talks have completely broken down over the issue of wage cuts. Once again, I believe this will be resolved. The political class isn’t going to put two of the Big Three into bankruptcy at Christmas time. Let’s get serious.

Look for some sort of weekend heroics and failing that, Bush will use TARP funds. In the meantime, the Asian markets are cratering and it could be an interesting day here. There is some fascinating bond trader talk going on at Across the Curve. Take a look at the comments.