The Economic Crisis

[eak227]

That they should make better cars if they want money.

[Skystrider]

I find GM's argument a bit thin. As soon as the government passes a bailout plan, the entire company is suddenly in some crisis of eminent dissolution. Yes, I know that it has been having trouble for several years, but this sudden need seems to be the result of cooking some books for their third quarter reporting.

[b-baller]

I think the big three needs this. I'm not just saying that because I live in michigan but if they fail the economy might just get worse without the industry. Not to mention our state wide economy. It is plummiting fast.

[freeman]

This conversation can and will go on forever so lets just end and agree that this country is in deep pigeon

[rocketman1555]

i think the car companies do need the bailout, they do provide a lot of jobs, especially in Michigan

isn't it great that the stocks are still falling, i figured that people would become less worried because obama is going to be president

[bah]

Jobs for the sake of jobs is not a good reason.

If the health of the economy is based on the number of jobs available to people, then it is really easy to achieve that goal. The government can just ban all machinery on the farms and we'll all have to toil in the fields.

[binary010101]

Jobs for the sake of jobs is not a good reason.

If the health of the economy is based on the number of jobs available to people, then it is really easy to achieve that goal. The government can just ban all machinery on the farms and we'll all have to toil in the fields.

That's true, but suddenly having your unemployment rate go up 5% because three major companies went bankrupt can't be good, can it?

[bah]

Yes, it isn't good.

General Motors is bound for failure sooner or later. The economic output of the company is less than the economic input it takes in. It sucks out productive capital from the economy. Bailout or no bailout, it will fail later or sooner.

Citigroup is having some major troubles. Its stock is now in the 4 dollar range, experiencing a precipitous drop in the past few days.

There is talk that they will try to auction off parts of the company, or just outright sell parts of it. There is also some kind of special board meeting on Friday. We'll see what happens.

If Citigroup remains below 5 dollars, it may trigger a wave of selling. Many institutional funds, such as pension funds, are barred from holding stocks below 5 dollars.

Also, there just might be a stock market rally on Friday..... or not... Who knows?

[Sheogorath]

GM has about enough money to last them to February-ish then they will probably have to file for bankruptcy if the $25billion bailout plan doesn't go through.

Citigroup will be cutting 53,000 jobs which is the largest cut since the 60,000 IBM cut in about 1993.

[andrewwski]

Jobs for the sake of jobs is not a good reason.

If the health of the economy is based on the number of jobs available to people, then it is really easy to achieve that goal. The government can just ban all machinery on the farms and we'll all have to toil in the fields.

Exactly...to only try and create jobs is attacking the symptom, not the cause.