Bloomberg reports Auto Bailout Negotiations Fail in Senate, Reid Says:

Senate negotiations for a U.S. automaker bailout plan collapsed, in a blow to General Motors Corp. and Chrysler LLC, which may run out of cash early next year.

“It’s over with,” Majority Leader Harry Reid said on the Senate floor in Washington. “I dread looking at Wall Street tomorrow. It’s not going to be a pleasant sight.”

Well, let’s look at some of the immediate consequences:

1. Asian Stock, U.S. Futures Slump After Auto Bailout Talks Fail

2. Dollar Falls to 13-Year Low Versus Yen as U.S. Auto Bill Stalls

3. Oil Extends Drop After U.S. Senate Can’t Agree on Auto Bailout

Dow futures are down 325 right now. It looks like the bailout line has ended, and now it’s time for us to take our medicine, barring any surprises from the executive branch. The result is not going to be pretty.

None of my limit orders on puts were filled today, so I won’t personally profit from tomorrow’s initial gap down. Fortunately, I’m pretty well hedged, so I won’t lose nearly as much money as every single American with a retirement account.

Now, who wants to give me odds that Paulson, Bernanke, or Bush make a surprise announcement tomorrow?