11.19.2008

Some crisis links (11.19.2008)

The Dow plunged once again today, resting finally at 7,990. The culprits this time: A fear of deflation and a fear of an America lacking an auto industry.

Automakers across the world feel Detroit's pain — literally! Imported cars with nowhere to go now swamp the great port of Long Beach, California, according to the New York Times (via Naked Capitalism). It is clear that the Big Three are not the only companies with a problem.

TPM reports that the President-elect will soon finalize his Clinton error.

Politico wonders whether the next President will be able to undo the poison pills the outgoing President leaves behind. What are these poison pills? They refer to Bush's last gasp regulatory 'reforms.' The problem these 'reforms' pose, according to Politico:

"The problem with what the Bush administration is doing is that these rules are extremely cumbersome to adopt, and they are every bit as cumbersome to undo," said David Vladeck, an administrative law professor at Georgetown University. "It condemns the next administration to spend years fighting on the old administration's agenda."

2 comments:

realtor in Toronto said...

I think the problems with car industry should have been fully anticipated. Car industry going down is one of the most stable signs of recession. If we combine it with high oil prices in the summer, which gave serious blown to the traditional American car, critical lack of innovations, when compared to European and Japanese cars, strong workers' unions in these factories - those Molochs can't be saved, at least not for a long time...
Regards,
Julie

Stephen Zielinski said...

Detroit surely will find surviving difficult with the disappearance of its market niche.