Wall Street hoping for rebound after huge selloff

NBC
Published: November 21, 2008

Wall Street looks for gains Friday after the Dow fell 445 points to close below 8,000.  The Dow plunged 10.6% in two days. 

In what might be considered good news in tough economic times, Fannie Mae and Freddie Mac announced a foreclosure freeze over the holidays, and Congress passed an extension of unemployment benefits to keep checks flowing. 
These steps might bring relief to Americans worried about jobs and money.  More than ten million Americans are looking for work.  Jobless claims have hit a 16-year high. 
Worries about legions of autoworkers becoming unemployed have kept debate over providing financial aid to the auto industry alive.  Democrats now demand carmakers submit a convincing survival plan.
“Until we see a plan, we cannot show them the money,” said House Speaker Nancy Pelosi. 
“The key is accountability and viability. That’s what we’re asking. That’s not too much,” said Senate Majority Leader Harry Reid.
Ford and General Motors have agreed, which could mean another round of hearings early next month.
“We get the chance to tell the story once again to Congress, and we have ample data, we’ve got very good plans,” said General Motors C.E.O. Rick Wagoner.
Some industry experts say bankruptcy is necessary to bring down labor costs and reorganize debt.
“The automobile companies aren’t taking this seriously.  They seem to think if they threaten to go out of business that we the tax payers will subsidize them now and forever, and that’s just silly,” said University of Maryland Professor Peter Morici.
Trouble for banks continues as well.  Citigroup is weighing selling itself off in pieces or entirely after losing half its value in four days.
Citigroup’s board will meet Friday to discuss how to get through the second worst bear market on record.  Only the depression-era drop between 1930 and 1932 exceeds the current decline.