GMAC, putting their money where there mouth is.
General Motors is in the process of putting their newly found money to use. Im a news conference yesterday they announced new financing to be offered by their dealers. GM said it would offer 0% financing on five 2008 models and 0.9% to 5.9% loans on dozens of other 2008 and 2009 models in a year-end sales push backed by GMAC. I think this is what the government want’s to happen with the money being pumped into financial institutions. Get the funds to the people as soon as possible.
GMAC Receiving TARP Money
GMAC is going to be receiving about $6 billion to help stabilize the company. The Treasury has kept the funds flowing and it does not look to be stopping anytime soon. They announced that “The new program didn’t have a specific dollar limit”. The money indirectly benifits Cerberus, who is a 51% owner of GMAC. This brings to a total of almost $350 billion that the Treasury has dispursed from the original $700 billion which was approved a few months ago.
CLICK HERE to read the story in the Wall Street Journal.
Good Luck and Good Currency Trading
Wall Street in Review….
2008 will be remembered as the year that brought Investment banks to their knees. First Bear Stearns, then Lehman…..followed by Merrill, Morgan Stanley and Goldman. Each had to come to terms with the fact that Investment Banking as we know it is gone.
In today’s WSJ is an excellent article on what went on over the Sept 20, 2008 weekend. It is a good and interesting read.
CLICK HERE to read the story.
Good Luck and Good Currency Trading.
Retail Sales Slump
Even after record discounting, retailers are beginning to see that sales are going to be considerably below expectations. Sales of luxury items are especially effected falling 35% from a year ago.
My fear is that this is only the beginning. Come January with the credit card bills coming in I can see even more severe cutting back on spending. In today’s WSJ there is an article on the effects the economy is having on small businesses. They are the hardest hit as lines of credit are cut back (even cancelled all together) and many of the customers are delinquent on payments.
CLICK HERE to read the story.
Good Luck and Good Currency Trading.
Toyota projects a loss in 2009
U.S. car makers are not the only ones facing financial problems. Toyota announced today that they are looking at projected losses in 2009. This would make the first time a loss occurred since 1938. This again signals to me that the Automakers problems are not JUST poor quality and unwanted designs. The credit crisis is a huge factor and one that not even payday loans would help.
CLICK HERE to read the story from the WSJ.
Good Luck and Good Currency Trading.
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