Nov 21, 2008 6:25 pm US/Eastern
CBS4 Your Money: A Week Carmakers Needed Help
MIAMI (CBS4) ―
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U.S. stocks rallied at the end of the week on a report that Timothy Geithner could be nominated U.S. Treasury Secretary
Don Emmert/AFP/Getty Images
Leaders of three of America's largest corporations pleaded for a taxpayer-financed rescue from lawmakers in front of a national television audience this week. Democrats in Congress offered only a glimmer of hope, saying they would reconsider a rescue if General Motors, Ford Motor and Chrysler submit convincing turnaround plans by Dec. 2nd.
However, the week began with Citigroup announcing it will be cutting 53,000 jobs in effort to recover from massive losses in the financial crisis.
On Tuesday, word came down that wholesale prices fell 2.8 percent in October, which was good for consumers but another sign that the U.S. was in recession.
On Wednesday, a gloomy forecast for 2009 from the U.S. Federal Reserve Bank, showing a prolonged slowdown with unemployment approaching seven percent next year. The stock market sunk.
On Thursday, a bailout for the Big Three automakers appeared to run out of gas after its leaders appeared on Capitol Hill; congressmen asked for a detailed plan by early December for them to be eligible for a $25-billion 'bridge' loan they're requesting.
Stocks dropped 445 points, falling to its lowest level since March of 2003.
By Friday, as Citigroup board of directors met in the morning discussing how to cope with its stock price falling below $5 a share, the day ended with news that president-elect Obama would nominate Timothy Geithner as U.S. Treasury Secretary; he's currently the New York Federal Reserve member.
At the end of the day, the stock market liked the news and rallied over two hundred points.
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