Although many valid arguments have been put forth that the bailout of US automakers is not a positive move – Wall Street appears to think otherwise. Today’s stock market is showing an early rally with all major indices up.
From CNNMoney.com: “The market now is rallying on hopes that we can begin to stave off massive layoffs in the auto industry,” said Peter Cardillo, analyst for Avalon Partners.
European shares also rose, the pan-European Dow Jones Stoxx 600 index (ST:SXXP: news, chart, profile) showed 5.1% growth to 199.59, but this is still more than 45% lower than its position at this time in 2007.
Some are hoping that this rally signifies that the end has been reached, and long term positive growth is beginning. According to President Elect Obama however, things will get worse before they get better. At least we are avoiding massive auto industry layoffs which could have triggered a continued downward slide.
I just wish Detroit had heeded the call for innovation earlier, and was one of the shining examples of positive growth instead of one of the casualties of this market.
[Photo Credit: http://z.about.com/d/cars]