This article talks about General Motors and how it is continuing to struggle despite federal bailout money. In 2007, the company lost $43.3 billion and then lost $14 billion in December 2008 alone. As part of a plan to save money, GM will cut three of its eight brands: Saturn (by 2012), Hummer (end of March), and Saab (which filed for bankruptcy protection last week in Sweden) and turn Pontiac into a niche brand with fewer models. According to the article, "G.M. is offering 22,000 of it retirement-eligible hourly workers $20,000 plus a discount voucher worth $25,000 off anew vehicle if they leave by April 1."
This article represents that despite the governments attempt to intervene with the struggling auto economy, the auto companies are still struggling. In this tough economy, I believe it is only going to get harder if they are forced to cut jobs because not only would the jobs at the company be lost but also the jobs for millions of people in relatable industries, like steel and rubber.
http://news.yahoo.com/s/ap/obama_budget
President Barack Obama presented a multi-trillion dollar spending plan that would raise taxes for the wealthy, cut medicare, and set the groundwork for universal healthcare in the nation. President Obama said the plan would deliver campaign pledges of tax cuts to the middle-class, expand healthcare coverage, and combat the economic crisis. Along with cutting taxes and extending healthcare, the President has asked for an additional $75 billion to cover the cost of the wars in Iraq and Afghanistan in 2009.
President Obama has begun to make true on his campaign promises and has started to put into effect policies that will make sure his promises will come true. He plans on using the federal bailout money as a starting point for many of the projects.
http://news.yahoo.com/s/ap/20090226/ap_on_bi_go_ec_fi/home_sales;_ylt=AkJ1ZBZYdzv8MyX9VzwqzPOyBhIF
New home sells reached a record low in January and the average home price is down to $234,000, which is a 9.8% drop from December. In January, sells fell 5.6% in the Midwest, 6.5% in the South, 28% in the West, and sales rose 12.5% in the Northeast. Builders are now slashing home construction prices as sky-rocketing foreclosures continue to hurt the market. To help convince people to continue buying homes, President Barack Obama is planning to spend $75 billion to keep 4 million U.S. homes out of foreclosure. He is also including an $8,000 first-time home buyer tax credit as part of his $787 billion stimulus package.
The recession has caused the real estate market to continue to decline. President Obama is attempting to keep houses out of foreclosure as part of his massive stimulus package.
