The election of a new president has not slowed recession fears. After Tuesday's 300-plus point gain, the Dow Jones Industrial Average gave up five percent Wednesday, evidence that investors predict more doom and gloom for the economy.
This morning, automakers will ask for help. Executives from General Motors, Ford, and Chrysler will travel from Detroit to Washington to meet with House Speaker Nancy Pelosi. The industry hopes to get federal funding needed to survive a dramatic downturn and secure hundreds of thousands of jobs.
The unemployment report is due out tomorrow. The Department of Labor is expected to say that 200,000 jobs were lost last month and that the unemployment rate has grown by over six percent. Another report by payroll manager ADP shows 157,000 jobs were lost in the private sector last month, the biggest decrease since December 2001.
New numbers show too many people are struggling with debt. Consumer bankruptcies shot up 20 percent from September to October. Falling home prices, increasing credit debt and wages not keeping pace with inflation were factors in the rise.
On an up note, oil prices fell more than five dollars Wednesday, and gas prices fell for the 49th straight day. The national average now stand at $2.37 a gallon. In Baltimore, we’re paying around $2.20 for a gallon of regular unleaded.
