Bloggy Business Today

The “Big Three” have laid out their needs and have declared that if they don’t get any financial help soon, they may just be closing shop. Is the U.S. government listening? Unless they have earplugs on, the closure of the big three: General Motors, Ford and Chevrolet, could be the worst economic development the U.S. has ever faced and from all indications, they would do well to heed their call.

The Detroit automakers on Tuesday urged Congress to authorize $34 billion in loans and credit lines, far more than the $25 billion they failed to secure in November when lawmakers demanded the companies offer plans showing they could be made “viable.”

The development came on the same day that GM, Chrysler and Ford Motor Co posted a drop in combined U.S. sales of nearly 40 percent for November and warned that the world’s largest vehicle market showed signs of tumbling further in 2009.

The government has been put in a fix following the worst economic crisis ever to hit the country since decades ago. The pressure is mounting and though some sources say that help is on the way, hopefully it will not be too late to bail out the big three from impending closure or worst, bankruptcy.

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For most businesses, when something goes wrong in the course of business operations for profit, expect marketing to carry the burden of taking the blame. Such is the same issue right now for the big three automobile manufacturers of Detroit, Chevrolet, Chrysler and Ford. Their much celebrated losses and impending financial catastrophe has been blamed on their marketing strategies and not there actual car quality.

These three car manufacturers have been around and car enthusiasts don’t really need to own one to understand how good these vehicles are. They are a universal brand that has gained popularity and while many never saw this coming, it is apparent that at least two of them are clinging on to dear life in the corporate world.

The times are tough but that does not mean you cannot adjust towards the market trends. Good marketers know how to manipulate in business and apparently this is something that is being hit by most business critics.

It makes you wonder why the marketing people were not included in the axed jobs by these companies.

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Unlike the big three (General Motors, Chevrolet and Ford), Citigroup was given a financial bailout assistance worth $20 billion as the government lent a helping hand to save the stricken bank from billions of dollars that could have totally been catastrophic. Stocks reacted as well as Dow Jones industrial shot up 300 percent.

And so the proper selection of which companies to help out continues but there is still a lot of work to do as far as strengthening the financial system of the United States is concerned. There are more companies outside the big three automobile manufacturers out there drowning and if the lifesavers are not sent out to pick the proper companies that really need help, chances are this financial bailout strategy is entirely useless and futile.

Stocks may be up today but who knows what tomorrow would bring. We have seen this trend before. Stocks rise after any enticing development comes up. Would this trend continue or follow suit the previous spikes in the endangered trading and finance system of the United States of America.

“With these transactions, the U.S. government is taking the actions necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy,” the three agencies said in a joint statement. “We will continue to use all of our resources to preserve the strength of our banking institutions, and promote the process of repair and recovery and to manage risks.”

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Unlike most companies who are sulking their sorrows of a potent drop in the economy by 2009, American Express seems to have lined up its own share of contingency measures to keep its head above water. It is no secret that even the 4th U.S. credit issuer is having its own share of problems addressing the weakening economy and despite disturbing business scenarios in 2009, they are ready for it.

Of course, AmEx is not expected to drop down just like that. They have made the proper adjustments and have reportedly sought $3.5 billion from the U.S. government’s $700 billion financial services rescue fund, at an attractive rate of 5 percent on preferred stock with warrants, the publication said.

So while other companies are trying to figure out how they can make it through the year, here is a company looking ahead despite experiencing its shares fall 3.8 percent to close at $19.99 on Friday. They were trading at $51.90 at the beginning of the year.

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The ante for the needed rehabilitation fund has been raised to $700 billion dollars by the U.S. Treasury. However, there is now a change in plans. Unlike before, troubled assets will not be taken out of the hands of the banks, something that has become a much talked about issue and has likewise pushed stocks down in the market again.

Asian markets are tumbling once more and it is all thanks to this new development. Although a new president has been named, it seems that this negative corporate and economic news is only dampening the spirits of potential investors who don’t see any change at all in the structure of better times ahead for doing business.

So as business continues to go bad, so do the stocks. Investors still don’t see any sense investing in a world where money would be better off hidden in their personal safe.

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