Auto Bailout Update
by Tom on December 12, 2008
in Market Musings
Okay, here’s the latest that I know:
- The Senate didn’t approve a bailout last night.
- The pressure is now on President Bush to see if he’ll go back on his earlier “response” and take some bank bailout money and use it for the auto industry. He said he won’t, but we’ll have to see.
- It’s looking more likely now that at least one of the Big Three will file bankruptcy.
- It’s very unclear what that will mean to the auto industry and the economy as a whole, but one thing is clear, it’s not a short term “good thing.” A case can be made that long term it will be a good thing, but short term, it’s not.
- Stock markets around the world are having a “Horrible Terrible No Good Very Bad Day” to quote the children’s book.
What will this do to mortgage rates? Hard to say, stay tuned.
