Posted By RichC on November 10, 2008
General Motors (GM) opens at $3.60/share on Monday, and Ford (F) flirts with holding on to the $2/share price as both beg for a government bailout. There have been strong hints of bankruptcy in the GM camp, while one of the big electronics retailers Circuit City (CC) has decided to seek Chapter 11. Still technology is showing signs of a plus move today as both the Nasdaq and DJIA have opened to the plus side. (image to right reflects indices at 9:50 AM on 11/11/2008)
The struggles continue in the business world on the heels of the financial fiasco brought on by excessive borrowing and poor banking practices. I’m not seeing the light at the end of the tunnel and worry that some of President-Elect Obamas’ proposed tax ideas and social spending programs will not speed a ‘real’ economic recovery. Government spending and loaning can only pad the pain, but ‘real’ growth has to come from business growth, private sector jobs and employee productivity.
From a personal standpoint, no matter how I look at the financial picture for the companies I sell to, the outlook is glum. Many of my customers serve the automotive industry in a round about way and are going to be slowing and reducing their spending. Their employees jobs will be threatened and I expect a significant change in sales to them. Hmm … I best start considering my options?