The House passed the baton to the Senate last night with a vote of 237 to 170 in favor of approving $14 billion worth of emergency loans for Detroit auto makers. The Senate is where the race to extend a lifeline to the companies that have almost burnt through their cash reserves might come to an abrupt end. There is stiff opposition among the Senate Republicans to providing government funds to the Big Three; they would prefer GM, Chrysler and Ford file for bankruptcy protection to force restructuring. One thing is indisputable, however: time is of the essence, as GM and Chrysler will run out of funds in a matter of weeks. The Economic Policy Institute released a study this month contending that the collapse of the Detroit auto industry could cost the U.S, a loss of 3.3 million jobs over the next year. This the U.S. economy can ill-afford as many American have lost their jobs already. The Labor Department reported today that more people hit the unemployment line last week than at any time since 1982. Initial applications for jobless benefits last week rose to 573,000 from 515,000. Economists expected the number to rise to 525,000. Even though they do have longstanding economic problems, Detroit Three are also caught up in the worst economic crisis in decades. Consumers either in the U.S. or abroad are no longer able to spend on big ticket items, like new cars. U.S. trade deficit widened even further in October, as U.S. exports-- and autos are a big part of the U.S. exports,--fell. As U.S. exports declined 2.2%, the trade deficit rose 1.1 % in October, more than economists had expected, to $57.2 billion, up from $56.6 billion in September. The trade deficit with China widened to $28 billion from $27.9 billion in September. That is despite a sharp slowdown in Chinese economy. China’s exports fell 2.2% in November from a year earlier, the biggest annual decline since 2001. But China’s imports fell even further last month, 17.9% from a year earlier. China is the third-largest export market for the U.S. But its imports fell across the board, especially in commodities. Chinese imports of iron ore, for instance, fell 7.9% in November. Housing sales have dropped and prices are declining in most major Chinese cities. New construction has dried up, which saps demand for steel, cement and copper.