Economy Sends Out More Distress Signals

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WASHINGTON - There are more signs of a deteriorating economy as the credit crisis claims more victims from Wall Street to Main Street.

Now, the bank accounts of the big three U.S. auto makers appear to be on the verge of "running on empty."

Click play to hear Pat Robertson's analysis following CBN News Correspondent John Jessup's report.

Auto Giants Take a Hit

The steady stream of bad economic news seems to be getting worse by the day. And the outlook for the U.S. auto industry looks grim.

The stock price of General Motors has fallen to its lowest point in 60 years.

The world's largest automaker is now warning that time is slipping away fast - and conceding that it may run out of money as soon as the end of this year.

The industry is pleading for its own $75 billion government bailout.

Newsweek's Roben Farzad said, "They are using it literally to pay the bills. And just to live to see another six months."

During their private oval office meeting Monday, President-elect Barack Obama reportedly urged President Bush to support immediate emergency aid.

So far, the Bush administration has resisted letting automakers tap into the $700 billion bailout fund.

While the push for government aid is gaining traction among some in Washington, it's not necessarily the case among the public.

A USA Today Gallup poll shows 47 percent of adults believe "providing loans" to the auto companies is "not very important."

It Gets Worse

Meanwhile, across the financial and corporate sectors, there's yet more bad news.

Insurance giant AIG lost $24.5 billion in the third quarter, but that's been upstaged by its $150-billion government loan from the Federal Reserve.

Starbucks Coffee says it can't even project a profit for 2009 after the company's quarterly profit fell 97 percent.

Electronic retailer Circuit City - filing for bankruptcy - announced its closing 700 stores and cutting 7,000 jobs.

"This is the worst economic times of our lifetime," said Democratic Senator Sherod Brown.

And the German shipping company DHL, announced it's dropping its U.S. delivery services, translating to a loss of around 8,000 - 9,000 jobs.

Particularly hard hit is its hub in Wilmington, Ohio.

Mayor Dave Raizk remainded optimistic saying, "We're not gonna have a ghost town. This is a great community, there's wonderful people that live here, and we're all gonna work together."

Meanwhile, there's a battle brewing over transparency with the first bailout package.

Bloomberg news reports the Federal Reserve has refused to list all the recipients of the nearly $2-trillion in emergency loans paid for by taxpayers - creating a climate of doubt for the credit markets in already uncertain financial times.

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CBN News
John Jessup

John Jessup

CBN News Washington Correspondent

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