New book by Larry Connors Click here Improve your trading - See how
--A proposal from Democrats in Congress aims to bail out three major American automakers, which have been hit hard by the economic downturn and the credit crunch.
General Motors, Ford and Chrysler are lobbying Congress to approve the $25 billion bailout, but with Republican dissension, many think it may not happen until after the new year. That's when President-elect Barack Obama takes office and Congress will have an even larger majority of Democrats.
The proposal would be in addition to $25 billion in taxpayer-backed loans already approved for the industry in October.
Rep. Jerry Lewis, R- Redlands, understands how important the auto-manufacturing industry is to the U.S. economy but is skeptical that a financial bailout is going to solve the problems facing the industry today, said his spokesman, Jim Specht. Lewis' district includes Apple Valley, Hesperia and Adelanto.
"I am open to the big-three automakers radically rethinking their game plan for succeeding in a market where they have been declining for years, and government aid could be a part of that plan," said Lewis, in reference to General Motors, Ford and Chrysler.
" We h ave a l re ad y approved $25 billion to backstop the auto industry, and there is no sign yet that they have determined a way to use those funds," he said. "We cannot simply provide billions more with no assurance that the automakers will be able to succeed and repay the taxpayers' investment."
Rep. Howard "Buck" McKeon said he wouldn't support an additional $25 billion because he still doesn't know what happened to the sum already approved.
"Twenty-five billion dollars used to be a lot of money," added McKeon, whose district includes Victorville.
" T h e re a s o n why they're in this situation right now has nothing to do with the last 10 years," said Dave Greiner, vice president of Greiner B u i c k-Po n t i ac -- G M C, i n Victorville. "It's what h a p p e n e d the prior 40 years before that."
Greiner said that 1 million people rely on pensions and salaries from General Motors Corp. alone. But GMC, which once held 55 percent of the market share, now has only 30 percent and is losing money from having to take care of its employees, he said.
"The cost per retiree is more than the steel costs to build a car," Greiner said.
H e ad d e d t h at i f one of the three major American auto manufacturers goes down, 3 million to 10 million jobs will be lost in one year, and the federal-income-tax receipts lost would total $156 billion within three years.
To see more of the Daily Press, or to subscribe to the newspaper, go to http://www.vvdailypress.com. Copyright (c) 2008, Daily Press, Victorville, Calif. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
