Saturday, November 08, 2008

The financial outlook as we enter 2009

US retail sales are ominously the worst in 35 years.

1.2 million U.S. jobs were lost in 2008, and unemployment has soared to 6.5%. And with most economic indicators signaling even more difficult times ahead, job losses will likely deepen and continue through 2009.

Top auto industry executives and the president of the United Auto Workers are asking for additional federal aid for the struggling U.S. carmakers.

General Motors warned Friday that it has only a minimum amount of cash to operate its business through the end of the year, and even with planned restructuring will fall short of cash in the first two quarters of 2009.

Despite receiving a portion of a $25 billion industry bailout from the federal government, Ford said it would cut its R&D budget and eliminate about 10 percent of its white-collar work force.

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