“as gm goes–so goes America”.gm is going bankrupt & America is going deeper in to a downturn.general motors stock plummeted to close at its lowest since 1935 to $1.45 a share on march 5.the dow jones industrial sector lost nearly 60% of its market vallue in less then a year.
citigroup,bank of America & insurance giant AIG are asking for more bailout green packs.the financial crisis is debilitating the bank system so depressingly that an unthinkable prospect of limited renationalisation is looming large.with February’s job loss of 651000 the unemployment rate has peaked at its 25 years high of 8.1%.
the economic condition is getting worse because the credit markets that are essential for small business & consumers are strained.because of the underlying risk & uncertainty,fund raising in the banks have become more stringent in applying their lending criteria as they return to risk,rather than market led,pricing.
lack of readily available funding means a reduction in business operations & employment,forcing business to hold on their cash reserves to suevive worsening business conditions.
