Before the Bell: We can work it out
Good morning and welcome to Before The BellWe are suspending operations until we can broker a deal in Congress to bailout, er, rescue Wall Street. We shall not publish until the crisis is solved.
P.S. Shares were down overnight. Suffice to say that if the market is up, it’s because of optimism about the Senate’s approval of a buyout plan. And if it’s down, it’s because of pessimism about the prospects of the bailout. Tuesday’s action took back more than half of the prior day’s record losses. The Senate is expected to vote on the package tonight.
President Bush, who has been guided by the tenets of small government and the free market for the past eight years, approved $25 billion in loan guarantees to the ailing auto industry, at a cost of $7.5 billion to taxpayers. The guarantees give the automakers access to low-interest loans to help convert their fleet to more fuel efficient vehicles.
The automakers are expected to release their month sales figures today. The average forecast is for U.S. auto sales to drop to a 13.5 million annual rate in September from a 16.2 million rate a year earlier and down from a 13.7 million rate in August.
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