Wall Street was last night anticipating that at least one of America’s Big Three carmakers will file for bankruptcy protection within weeks after bail-out plans for the country’s near-bust car industry were left in tatters.
General Motors shares sank to their lowest level since 1938 at one point yesterday amid a showdown between the outgoing Republican Administration under President Bush and the incoming Democrat Administration led by Barack Obama, the US President-elect who takes office on January 20.
While both sides of Capitol Hill bickered over the terms and conditions of a possible $25 billion (£16.8 billion) emergency loan, Wall Street traders became convinced that Washington will fail to devise, vote on, and force through rescue funds in time to save General Motors, Chrysler, and Ford.
The moniker “Big 3” is probably a misnomer now that their market share has significantly fallen over that past 30 years. I believe GM the largest of the three is down to 20%.