Things continue to deteriorate. Earlier in the week, Intel reported poor earnings cutting 09 revenue by a billion dollars and Citigroup announcing a 50,000 person layoff on top of the 25,000. Unemployment in the US is expected to hit 8.5% and if an automaker is allowed to fail best estimates are coming in that if could jump by as much as 4%.
There is a video being distributed quantifying the losses in allowing the North American manufacturing industry to die. It is very refreshing to see compared to all the media talking about “bailouts”. The media is doing more harm to confuse the general citizen by misusing the term “bailout” instead of explain to people that it is a loan guarantee so that the manufacturers and major employers can fund their businesses.
People are out there seem to think that the government is just giving them money. If they do not adequately provide capital to these businesses they will fail and weaken confidence in an already fragile financial system. Causing massive unemployment and further deteriorate consumer confidence. The world will never treat the American financial system the same again.