Markets sound alarm over autos, east Europe | The Daily Star
12:00 AM, February 19, 2009 / LAST MODIFIED: 12:00 AM, February 19, 2009

Markets sound alarm over autos, east Europe

Financial markets signalled alarm on Wednesday at traumas in the US car industry and damage to banks from the economic crisis in eastern Europe, snubbing US President Barack Obama's vast spending stimulus.
Stocks fell despite Obama's pronouncement that the 787-billion-dollar spending blockbuster "does mark the beginning of the end" of the crisis.
Meanwhile the Japanese central bank began a special meeting on fighting the crisis, and Taiwan and Spain joined a long list of countries now officially in recession.
"The good news is that President Obama signed into law the US stimulus package, but on the flip side is that the car giants GM and Chrysler announced that they would require more Federal support," said Calyon analyst Stuart Bennett.
The two groups have asked for further federal help of 21.6 billion dollars (17.0 billion euros).
"Indeed, GM suggested that without further funds they would run out of funds as early as March," he said.
"The doom and gloom engulfing global markets therefore shows no sign of abating, with equity markets sliding."
The Swedish government said that it would not rescue GM subsidiary Saab after GM warned that the offshoot might have to file for bankruptcy this month.

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