The Stock Market Swoon and the Auto Industry

Ok, so maybe it's not a "swoon", it's a downright panic. After Lehman Brothers' collapse, the stock market took another huge hit to the family jewels, falling over 500 points, its worst drop since 9/11. As the fed continues to discuss things such as interest rate cuts and what to do to stay away from the word recession, the auto industry continues to sit and watch as its blood continues to trickle out.

With this round of events, people are talking crash--and even without that discussion, the auto industry's situation was already grim. Even though lobbyists have been clamoring to get the Big Three a huge low interest loan and its been a focus of the presidential candidates, now there are more hands reaching out, and we all know the rule of the jungle--the more mouths to feed, the less they each get.

Will this ultimately affect the bailout that seems to be impending? My guess is yes. We've gotten past the feel-good rah-rah-rah-Go-America of the conventions, and now the hard questions have to continue to be raised as to where money goes and how--hurricanes and stock market crashes aside, the automakers need this money like now--but they are just going to have to rub some dirt on it for another undisclosed amount of time. Yikes.

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