Urgent Action Needed To Control Auto Industry
http://www.freep.com/article/20090218/COL06/902180412/1081/Obama+must+control+auto+circus
President Barrack Obama and his task force need to take urgent action to stem the growing trouble in the automobile industry. Instead of submitting concrete plans to revive their operations or submitting concrete deals with the UAW and the bondholders, the two auto giants General Motors and Chrysler have sought fresh debt to continue their operations. While General Motors has said it needs $30 billion to stay afloat, Chrysler which has already received $4 billion says it needs another $5 billion by March 31. Although the UAW says that it has reached tentative deals to modify labor contracts with General Motors, Chrysler and Ford Motors, these deals must still be ratified by rank-and-file union members. Meanwhile General Motors’ talks with its bondholders to convert their bonds into equity are still going on.
Geithner To Announce A Revamped Financial Rescue Plan
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/07/AR2009020702098.html?hpid=topnews
Top economic policy makers are putting finishing touches on a revamped financial rescue plan. The aim is to deploy hundreds of billions of dollars into the economy so as to spur the flow of the credit to consumers and businesses.
Treasury Secretary Timothy Geithner believes that the government should aggressively use all the available tools to deal directly with the massive financial sector losses and to bolster the confidence of the investors in the future.
The plan was scheduled to be announced on Monday, but there is going to be some delay. The administration plans to focus on the stimulus plan that might be passed on Tuesday.
Everyone is hoping that the revamped plan they come up with works. There is a feeling that this is the step in the right direction. After too many false starts in the previous administration, let us hope that the things move in the right direction this time around.
http://www.nytimes.com/reuters/2009/01/20/business/business-us-markets-global.html?_r=1
Off late there has been a slump in the Asian shares. ‘How does a slump in the Asian market affect us,’ you may say, sitting in the US. It does! It strengthens the grip that the ‘hands of recession’ currently has on our economy. For example, UK has recently launched another bail-out plan for its banking industry after the Royal Bank of Scotland reported its biggest loss till date.
The big mess that we have landed ourselves in, is now comes to light. You need to look at the big picture portrayed by the global market.
So, please while sitting in the US, don’t feel that the global market weakness will not affect you. It does in a big way! Get geared to do something about it.
