Asian Auto Stocks Fall 10% Asian auto stocks fell more than 10% after the US senate rejected a $14 billion dollar bailout plan for US automakers.
The failure of the bailout measure increases the chances for a bankruptcy at one of Detroit's big 3 automakers.
It has been revealed the General Motors has retained bankruptcy counsel.
Combined with other negative indicators the future of the dollar and the Forex opportunities it provides is uncertain.
Pressure on White House Shares of Toyota and Honda fell by more than 10% as investors dumped shares on fears of massive unemployment and supply disruptions in the auto industry.
The failure of the bailout measure has put pressure on the White House to consider giving the troubled auto industry emergency funding.
Analysts and industry experts say that a bankruptcy at any of Detroit's car makers could have a domino effect causing the failure of suppliers supplying the industry.
Bailout Failure Bad For Everyone in the Auto Industry Hiroyuki Fukunaga, representative director of Investrust Inc in Tokyo stated, "If this causes the parts makers under the umbrella of the Big Three to go under that could disrupt the supply of parts to Japanese automakers producing in the U.
S.
One way some people choose to look at this is that it could eliminate competition from the U.
S.
, leading to a concentration of power in the auto industry to Europe and Japan.
But the reality is that this would probably lead to severe conditions for the Japanese automakers as well.
" Analysts estimate that up to 90 percent of U.
S.
parts makers supply multiple customers, meaning a shutdown carries a risk of disrupting production all around.
Ironically the failure of the automaker bailout has sent Forex traders scurrying to the safety and Forex opportunity that the dollar presently provides.
Forex Opportunities in a Down Market