Speaker Of The House Nancy Pelosi and the Democratic majority in congress would like to move quickly to rescue the American automobile industry which has several million jobs related to it in some support function including dealerships, service, etc. However, President Bush claims to be less sure of what to do at this point. President-Elect Obama expressed his concerns with President Bush the other day at their White House meeting.
But it is clear that fresh signs of more problems for the economy make it clear that it will extremely difficult to to rescue the American automobile industry as well as other troubled businesses and some banks as the bleeding of cash is so serious. By January, General Motors could be facing bankruptcy if the situation continues with very poor sales and little customer demand for new vehicles.
And with banks, it is unfortunately only a temporary raise in the insured savings limit to $250,000 from the normal $100,000 that will expire in a few months. And it is still likely that many will continue to remove funds from troubled banks, only helping to advance their slide into collapse. More bank failures are a fact.
For General Motors, which is bleeding massive amounts of cash, it is not clear whether any bailout will even be enough to help the ailing American auto giant. General Motors needs sales, and the public isn't buying because they are hurting financially and buying a new car isn't at the top of many Americans wish lists right now. Economic survival is. GM stock is now trading at a little over $3.46 cents today. This low level hasn't been witnessed since 1946, when GM just begun to build new cars and switch back to peacetime production of goods.
The United States needs it's automobile industry to survive. It is vital to millions of jobs somehow related to this industry in some way, including car dealers, parts, service and even loans. Congress will have to do something and very soon.
Another seriously bad sign was the shipping giant DHL discontinuing domestic services. This proves that business and others are not shipping goods or important documents at the level previously witnessed when the economy was stronger. It is a bad omen for the economy for sure. Many of the 9,500 jobs being cut are among both management as well as nonunion drivers not part of the Teamsters Union. It is another sign of the problems with having a nonunion job in this bad economy, where it is harder to lose your job if it is a union job. Another bad sign is that DHL is specifically cutting back on only it's American shipping service where it's international services remain more healthy. The American economy remains the sicker of the industrialized economies at this point and is only leading the world into decline.
In the very short term, congress and the White House need to act very quickly. And in the slightly longer term, President Obama will have his hands full of challenges to rescue jobs and the economy. A difficult path lies ahead, where immediate action is required to stop the daily drip-drip of bad news about the economy. However with both the White House and congress in Democratic control, it should be possible for the government to act more quickly than usual when you have political gridlock in Washington.
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