Financial trends seem brighter in the Near Future. After the Senate rejection of the $14 billion bailout plan, the White House is now considering allowing the automakers to share some of the $700 billion earmarked for the banking system. In Europe, and after initial strong resistance from Germany, the EU approved a package of €200 billion to stimulate the economy.
The converging effects of this two plans should build some confidence in the market, prompting gains across all main indexes on Monday.
Global economic trends continue gloomy, with ongoing problems compounded by the Senate rejection of the $14 billion bailout for the auto industry. The bill’s collapse sent shock waves through the global market, prompting losses across all the main indexes. However, given the weight of the auto industry in the economy, it is unlikely that the US government will allow for the bankruptcy of one or more of the Big Three.
Assessment: Some deal will be hammered out in the Near Future that will prevent the loss of the 3 million jobs that the auto industry sustains.