Posted on 12/12/2008 5:57:53 AM PST by TigerLikesRooster
Stock futures slump after Senate sinks bailout
GM, Ford shares drop in pre-open trading; Bank of America slashing jobs
By Simon Kennedy, MarketWatch
Last update: 8:02 a.m. EST Dec. 12, 2008
Comments: 506
LONDON (MarketWatch) -- U.S. stock market futures slumped Friday after plans for a bailout of the auto industry fell apart in the Senate amid a dispute over union wages.
The last minute collapse of the rescue sent shares in car makers tumbling, with General Motors Corp. (GM:General Motors Corporation GM 4.12, -0.48, -10.4%) dropping over 34% in pre-open trading and Ford Motor Co. (F:Ford Motor Company Last: 2.90-0.35-10.77% 4:02pm 12/11/2008) down over 20%. Read more about the failed plan.
The failure to obtain funding could spell immediate problems for GM and Chrysler, which are most in need of the cash. The Wall Street Journal reported that GM has already hired lawyers and bankers to consider whether it should file for bankruptcy protection.
"The decision came too late for U.S. markets, but Asian equities fell on the news and there can be no doubt that the ripple of selling will roll on through Europe to America," said strategists at Moneycorp. S&P 500 (SPY:SPDR S&P 500 \ Last: 87.94-2.17-2.41% 4:00pm 12/11/2008) futures fell 36.10 points at 838.40 and Nasdaq 100 (QQQQ: Last: 29.09-0.82-2.74% 4:00pm 12/11/2008) futures dropped 40.75 points at 1,149.25. Dow industrial (DIA:Dow Diamonds ETF News , chart , profile , more Last: 85.86-1.78-2.03% 4:00pm 12/11/2008 ) futures were down 294 points.
(Excerpt) Read more at marketwatch.com ...
The sooner the better
Better a slump now than 10 years of slumps if the bailout had gone through.
After some noise, we are back to where we were.
What’s good for GM is good for America.............Still holds true........No Bailout. Chapter 11 now...........
UAW
Commonality doesn’t mean causality.
A more telling approach would be to compare the differences between auto industries that are profiting and those that are failing...
well, whuhduhyaknow!!! It’s the UAW again!
The thing is, after the the big 3 go BK, it will create a tremendous opportunity for new ownership to reorganize and create a new company, building on the infrastructure that’s already there.
Bankrupcy is the only way an investor will touch the big 3. It’s the best thing that could happen at this point.
I just hope it’s an American company that steps up to the plate and takes on the competition.
Gold & silver took a small dive this morning, too. I’ll keep ya posted on how it goes today. It had a huge leap this week, which was nice. Re-gained some ground.
I am so glad that the Senate held it’s ground. I’m completely surprised, actually.
No bailout. File, Big Three! File!
Wages will fall to the level of actual productivity. If the UAW won't cut theirs, then world markets will cut the wages of everyone in America, by lowering the dollar.
There aren't any options or choices, real wages fall, period.
Stock futures slump after Senate sinks UAW bailout
Hopefully a significant number of Senators will for the group "All Bailouts Stop Here". The depth of the global Ponzi is enormous and it must complete its unwinding.
In the meantime, all voters with half a brain need to contact all their respective representatives and demand that government cut spending to all but necessary functions.
Programs like Head Start, No Child Left Behind, social research funded projects, bridges to nowhere, legislative and executive pay raises, etc., etc., must have the plug pulled on them.
What I am seeing is the government now controlled by libs at all levels scrambling to raise taxes. That will be the brick that kills the camel w/ respect to an economic recovery.
Yup.
They should have retained counsel awhile ago - probably back in July. The cliff was coming into view back then.
And liberals. Only they don't know it. Unfortunately, the damage to the country would be also enormous. On the other hand, only huge jolt can dislodge liberal parasites.
Umm...actually most of the foreign automakers are getting bailed out by their governments.
The US is the only one not bailing out their domestic automakers
Bush is going to unilaterally bail them out with TARP funds!
What an A$$hat!
Not likely. The single eternal truth to democrat politicians is that government exists to provide a middle-class lifestyle to otherwise unemployable people. Modern government is a jobs program. You cannot expect a democrat to cut spending when he knows such cuts will lose him votes. Government jobs = democrat votes.
If an individual company stock — or “stock futures” in general — rise and fall on the news of massive Federal bailouts (or lack thereof), then the U.S. stock market is effectively functioning as a public utility.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.