Times are tough all over, but governments are trying to prime the money pump:

Detroit Rescue Plan

General Motor’s board is currently reviewing the rescue plan that will be released on Tuesday and will be considered by Congress next week. GM said on November 7th that it may not have sufficient cash to operate after December. A 10-12 page summary of the plan will be released to the public and a more detailed 80 page version will be sent to Congress. The plan is rumored to entail closing factories, eliminating half the US brands, delaying health care benefit payments, and converting some of the companies’ $43 billion debt into equity in the company.

Sounds like voluntary reorganization.

Spanish car sales fall 50 pct, worst since 1993

Spanish car sales fell 49.6 percent in November, marking the biggest fall in nearly 16 years as Spaniards slashed spending amid credit restrictions and soaring unemployment, industry data showed on Monday. … Spain’s government last week budgeted 800 million euros ($1.04 billion) towards its struggling car industry amid fears the sector could lose 50,000 jobs. … Spain’s unemployment rate was by far the highest in Europe in October at 12.8 percent, according to the European Union.

Awaiting comment from our Spanish correspondent.

Manufacturing Slows Sharply In China

Manufacturing activity declined sharply in November, as measured by the official purchasing managers’ index. The PMI fell to 38.8, from 44.6 the month before, the China Federation of Logistics and Purchasing said Monday. A reading below 50 indicates contraction. … After the pace of economic growth slowed in the third quarter to 9.9%, a half-decade low, the government announced on Nov. 9 a 4 trillion yuan ($585 billion) stimulus package focused on upgrading infrastructure, raising rural incomes via land reform and implementing social welfare projects such as affordable housing and environmental protection.

China and Growth

Unlike most of the world’s economies, China is widely believed to need a minimum of 7 percent annual growth to maintain social stability. New jobs are required for the millions of young workers graduating from school each year and the millions more that continue to migrate from rural areas into the industrialized urban economy.

As a major consumer of world energy supplies, the state of China’s economy will play a major role in oil demand for a long time to come. Officially the Chinese government remains optimistic that it has the internal resources to continue to grow even with faltering exports. Last week Beijing cut interest rates by the most in 11 years and unveiled a $586 billion stimulus plan to keep the economy growing in the midst of a global recession.