Stocks are continuing to show weakness during early afternoon trading on Monday as investors continue to respond poorly to disappointing news from the auto industry and remain wary of what may transpire at the meeting of the G20.
In remarks at the White House, President Obama said that the auto industry woes are the result of a failure of leadership. He stressed that while the industry will not be allowed to vanish, the companies need to show considerable restructuring efforts before more money will be given to them.
In order to help the companies along, Obama's administration is offering GM and Chrysler limited time to work with creditors, unions, and stakeholders to develop plans to restructure.
While Chrysler and GM are very different companies with very different paths forward, both need a fresh start to implement the restructuring plan they develop, Obama said. That may mean using our bankruptcy code as a mechanism to help them restructure quickly and emerge stronger.
The major averages have moved off their worst levels of the day in recent trading, although they remain firmly negative. The Dow is currently down 262.20 at 7,513.98, the Nasdaq is down 47.69 at 1,497.51 and the S&P 500 is down 27.13 at 788.81.
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