White House plans auto bailout by Christmas

The Bush administration, particularly the US Treasury is painstakingly working with the auto bailout plan to rescue the big 3 automakers in US. The administration appeared to want an agreement with the big 3 before Christmas day.

In recent days, however, administration officials and company executives have sequestered themselves, offering only the slightest hints of what they are discussing, as market analysts speculate about how long G.M. and Chrysler can survive without a government lifeline.

Ed Gillespie, a senior adviser to President Bush, told Fox News on Wednesday that an announcement on aid was not necessarily imminent. “There will be a decision obviously by the end of the year,” he said. President Bush in a separate interview said he would make a decision “relatively soon.”

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White house plans to bail out the big 3 US automakers

The White House, particularly the US Treasury is targeting a bailout for the so called big 3 US automakers as it envisioned to rescue the big 3 out from bankruptcy. but the bush administration may utilize the taxpayers dollars to do the program.

One possible scenario: President Bush could loan money through early January, leaving it to the new Congress to try again to approve loans for the industry before the Jan. 20 inauguration of President-elect Obama.

The new Senate, which will be sworn in Jan. 6, will have at least seven additional Democrats, perhaps as many as nine, who are not now in office.

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US auto rescue plan collapsed

If not for a dispute over union wages, the lifeline to save the so called big three US automakers will be pushed through. On Thursday night, the $14 billion bailout deal collapsed in the Senate.

The collapse of the talks in the Senate means Obama will have a much greater say in how to aid the companies. He will be sworn in as president on Jan. 20.

The bill passed by the House would create a White House-chosen "car czar" for the auto industry, empowered to hold the companies accountable for developing long-term viability plans. The car czar would be able to require immediate repayment of the loans if the companies don't make adequate progress by Feb. 15. Final restructuring plans would be due March 31.

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US Auto rescue plan passed

A 14 billion US government rescue plan for American automobile industry was passed in the US House. The bailout plan aimed to help the deteriorating conditions of automoblie industry, particularly General Motors and Chrysler.



Some Congressional Democrats speculated that if Senate Republicans were kill the rescue plan, the Treasury secretary, Henry M. Paulson, Jr., would have no choice but to keep G.M. and Chrysler afloat, at least until the new Congress begins early next month and wider Democratic majorities are sworn into office.

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Most asian markets experience moderate gains

Most of the Asian Markets, including the Pacific Markets have seen and experienced a slight upswing on its market tradings on Wednesday, but the Hong Kong Hang Seng index dropped 2 percent on its opening.

Market breadth was positive. On the New York Stock Exchange, winners beat losers by four to one on volume of 1.13 billion shares. On the Nasdaq, advancers topped decliners by over five to two on volume of 1.74 billion shares.

Treasury prices slipped, raising the yield on the benchmark 10-year note to 2.71 percent from 2.70 percent late Friday. The 10-year yield dipped below 3 percent last month for the first time since the note was first issued in 1962. Treasury prices and yields move in opposite directions.

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Sony to cut 8000 jobs

Japan's Sony is expected to cut almost 4 percent of its workforce, totaling to 8000. The cutting of jobs was due to the effect of financial crisis that likewise hit the electronic products.



The restructuring is a setback for Chief Executive Howard Stringer, who had implemented a major restructuring after taking the helm in 2005 and until recently seemed to have put the company on a recovery track.

It also underlines the grim outlook for Sony and its rivals during the year-end shopping season as the financial crisis grows into a broad recession that has already engulfed the United States, parts of Europe and Japan..

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Layoffs expected to slam Wall Street

The Wall Street itself is expecting the recent slashing off of thousands of jobs to slam the stock market, particularly in US.


Those layoffs will drain New York and other cities of vital tax dollars while swelling the fast-growing ranks of the nation's unemployed. U.S. employers cut 533,000 jobs in November — the most in 34 years — including 32,000 in the financial-services sector, the government said Friday.

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