Obviously the auto industry in American is seen as a key to a better America. It just so happens that maybe auto makers are focusing their growth abroad, for example the “imported from Detroit” slogan. With GM earnings coming out recently and showing a loss of $700 million before taxes concerns should be raised. The growth of GM, Ford, and the list of many others hinges on Europe and abroad. Investors fail to realize that these markets are going to come under pressure in the near future. Europe is on the brink of a recession and if they enter into one many of these emerging market companies will follow. GM numbers this morning gave insight into the real situation in Europe and abroad. Many ma argue that the growth of the autos is far beyond Europe, but they fail to realize the repercussions a European recession will have here and abroad. The autos are telling the markets something and have been for a while, the U.S. recovery is threatened from abroad.
Harry S. Truman