Citigroup can heave a big sigh of relief these days. Facing the prospects of the worst financial disaster in ages, the U.S. government granted a $20 Billion financial bailout to the threatened group, hopefully strengthening the financial backbone of the country. The news had quite an impact as stocks soared when the Citigroup bailout was announced.
The question is on whether this was enough and up to when it can be sustained. It is no secret that Citigroup is only one of the many companies that are facing bankruptcy and among the significant companies include the big three car manufacturers namely, Chevrolet, Ford and General Motors. The big three were not granted the financial aid and from the looks of it, the future does not show a positive light as far as these companies are concerned.
They have openly announced as well that they may not even make it through 2008 since declining car sales are really hampering their operations. Also, a lot of people are in danger of losing their jobs as the factors needed to bring down the rising costs and losses of the big three continues.
Will the government re-study the status of the big three car companies based in Detroit? Unless they do, the automobile industry is in serious threat of dying if nothing is done about it. While the current government is trying to deliberate on it, they better hurry. The year is only 35 days away from ending and if their pronouncements are true, one fall can lead to the fall of the whole country.
Originally posted on November 24, 2008 @ 7:38 pm