General Motors have began the process of filing for bankruptcy protection leaving many wondering if that would send the Wall Street plummeting again. However, contrary to speculation, the market rallied on another wave of positive economic data Monday.
Fears of the month ending on a gloomy note as with the trend for most of it were eased with gains.
Better-than-expected consumer spending, manufacturing, and construction spending data helped prop up the market. The Dow rose more than 2% while S&P 500 and the Nasdaq composite rose to this year’s highs.
Analysts, however, warn that while the data suggested that the economic decline might be bottoming out, this should not be readily taken as a sign of an upturn any time soon.
General Motors filed for bankruptcy Monday but this was already highly expected by all industries. GM’s filing came as the fourth largest bankruptcy in the history of corporate America (contrary to initial claims that it is the third largest in history).
Source: ABC News
What Can we common Poeple do about the Bailout? Nothing.. we just have to wait and see if the company comes up and develops new cars and prototypes to please the americal consumer