Dow on Track for Worst June since Great Depression

The country's in a world of hurt. Make a run through Michigan if you don't believe me. The once prosperous residents of the state have probably seen enough Wall Street-types to last a lifetime; I don't know if Chrysler is taking Cerberus down or Cerberus is taking Chrysler down, but Goldman sure did a number on General Motors today in downgrading its stock. Combine it with $140 oil and a downgrade of Citigroup, and you get this.....

U.S. stocks tumbled, sending the Dow Jones Industrial Average to its worst June since the Great Depression, as record oil prices, credit-market writedowns and a slowing economy threatened to extend a yearlong profit slump.

The Dow has slumped 9.4 percent this month, its worst June since an 18 percent tumble in 1930 during the Great Depression. All 30 companies have posted losses in the month as oil surged, the unemployment rate jumped to the highest since 2004 and concern grew that global financial firms will add to $400 billion of subprime-related writedowns. Bloomberg

Truth be told, Wall Street is nearly as bad off as the auto industry, but Detroit will find it hard to retaliate, short of running Cerberus out of town. Maybe Cerberus will pack up in the middle of the night, kinda like when the Colts left Baltimore. They have the resources, after all.

``We've got cash; we haven't filed anything,'' Chrysler spokesman Dave Elshoff said in an interview today. ``It's absolutely nothing we're considering.''

Of course, Dave is no Lee Iaccoca.

For one afternoon at least, it was like the good old days again at Chrysler.

Lee Iacocca, the savior of Chrysler in its darkest hour, was back.Retired for 16 years but still spry at age 83, Mr. Iacocca was welcomed back Thursday to thunderous applause from Chrysler workers who are, once again, facing tough times.

With Chrysler’s market share dropping and its future uncertain, who better to pump up the troops than its celebrated, straight-talking chairman of the 1980s.

“Don’t get panicked,” Mr. Iacocca told about 1,000 Chrysler workers at a townhall-style meeting at the Chrysler Technical Center. “Things are going to be O.K.” NYT

I sure hope you are right, Mr.Iacocca.

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U.S. Stocks Tumble, Sending Dow to Worst June Since Depression
Bloomberg

Chrysler Isn’t Considering Bankruptcy, Spokesman Says
Bloomberg

A Pep Talk at Chrysler, Hailing Its Hero of the ’80s
NYT

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