"By the time Obama takes his oath in January 2009, he will face an economy which is still in a middle of a severe and prolonged recession where households will continue to face unaffordable mortgage and other debt, declining value of homes (that financed their consumption all these years), risk of debt default or foreclosure, tight access to credit with stringent borrowing conditions, erosion of their retirement savings amid the bearish stock market, over a million lay-offs taking the unemployment rate to 7-8% and critical foreign policy challenges." From Roubini's RGE Monitor.
Meanwhile: "General Motors Corp., hammered by the worst auto market in 25 years, needs U.S. aid because 'time is very short' to stop its collapse."
The Wall Street Journal had an interesting article this morning on one way to save the auto industry, but I guess the chance of Congress doing anything "anti-union" is zero for the time being:
"Washington wouldn't have to find the courage to amend the labor laws to end the Detroit Three's captivity by the UAW. Nor would it have to repeal the CAFE rules that are now a sacred cow. It would simply have to allow auto makers to meet the fuel economy standards with any mix of autos made in domestic or overseas factories."
Posted by: Preston Earle | Nov 05, 2008 at 11:58 AM
Even the garbage hauling industry is down by 10-15%.
Posted by: Billy The Blogging Poet | Nov 05, 2008 at 06:23 PM