The big news of late has been the potential government bailout of the Detroit Three: General Motors, Ford and Chrysler. Because of poor sales, our domestic auto makers are running out of cash and can’t keep up with costs. The concern is that if the government doesn’t bail them out, the result will be a loss of a staggering 3 million U.S. jobs.
Kiplinger, an excellent source for personal finance questions and economic forecasts, has forecasted the following:
- Unemployment will rise to 8% in 2009
- GDP growth will slow down to 0%
- Inflation will decline in the coming months
- 2009 will see slight increases in housing sales
Kiplinger also states that President-elect Barack Obama’s tax hikes on high-income taxpayers will be delayed until 2010 at the earliest.
