Better of 2 Evils

A question on every one's mind this Monday must have been that how did Citi manage to bag a $20 billion commitment from the congress when a week earlier the Big Auto were denied $25 billion and asked to chalk out a business plan about how to plan to utilize the money.

The answer is very simple though bitter. Its a matter of picking the better of 2 evils. If the auto industry goes down, then no doubt it will have a significant impact on the employment numbers in US, but if the second largest bank in US does down, then it will take with it much more than just employment. The impact could forestall an even worse shock to the already fragile financial system.

In the words of David Resler, chief economist with Nomura Securities International, "You can't have a financial world without the major banks".

But will there be a Detroit without the Big Auto?