GM, automaker crisis shakes world's economies

Stuart Loory, Lee Hills Chair in Free-Press Studies, MU School of Journalism: The American steel and clothing industry have long since moved overseas, and so has the electronics industry. Now, General Motors and Chrysler have gone into bankruptcy. The largest bank in Russia will become a stockholder in GM’s overseas operations. This year, GM lost its place as the world’s largest auto manufacturer to Toyota of Japan. The U.S. government is pouring billions of dollars into relieving the crisis and is becoming a major stockholder in the industry that was capitalism’s model. This homegrown crisis has again shaken up the economic system throughout the world. Will the restructuring of the American automobile industry re-establish supremacy in the auto market at home and abroad?