This morning the Dow Jones plummeted by more than 800 points before recovering and is currently trading in positive territory. Commentators on CNN, Bloomberg and Fox have been touting what would happen if the Dow were to drop to 7479 which would result in trading being halted for 30 minutes. The enormous recovery has excited the market with hopes high that gains continue.
Both the Ford Motor Company and GE (General Electric) have stated that they are not looking to file for bankruptcy protection (Warren Buffett’s recent injection of equity no doubt helps, as will GE’s plan to raise $15 billion from the equity markets). General Motors (GM) is in serious trouble (GM’s share price is at its lowest price in over 50 years) and GE, GM and Ford are all planning massive reductions in their workforces.
After President George W Bush gave his speech in an attempt to steady the market, it fell by around 200 points – showing the lack of confidence shown in the current Administration. I continue to talk to Americans who just want the Federal Election to be over and Barack Obama is far and away the person being touted as the preferred President.
As I am currently in New York which is a predominantly Democratic State, this does not come as a shock, although the sentiment seems far more reaching than just the State of New York. With just over 3 weeks to go to the Presidential election I am sure the President Elect will have plenty to worry about. At this stage it is being reported that Obama is leading by up to 10 points nationally but the election is set to be decided in only a handful of states – Ohio is at the top of the list.