The auto industry is in some serious trouble and bankruptcies are a definite possibility. Attorneys speculate that General Motors Corp. may be heading down that dark road, resulting in legal fights about union issues and consumer warranties.

“If a General Motors bankruptcy leads to manufacturing plant closings or a scaling back of production, a wave of bankruptcies is likely to follow,” reported lawyers.

According to Evan D. Flaschen, a Hartford, Conn., partner at Houston’s Bracewell & Giuliani, “the ripples will be profound.”

With the big auto industry financial disaster, small businesses will feel the effects. Those who sell products and services to the big guys including restaurants and corner stores will suffer greatly.

Stated The National Law Journal, “after the U.S. Senate on Dec. 11 failed to approve a $14 billion automobile industry bailout approved by the U.S. House of Representatives on Dec. 10, the White House hinted that it may consider using the Troubled Asset Relief Program (TARP), which could funnel up to $700 billion to financial firms under the Emergency Economic Stabilization Act.”

Stay tuned…

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Times are financially tough. People are losing their jobs left and right. It’s not easy out there. Not at all! However, some individuals must have read The Secret and have chosen not to let this economic crisis bring them down. Instead, they are making light of it by getting creative when trying to search for a job. Take Joshua Persky, for example. After getting laid off by the investment bank Houlihan Lokey, Persky hit the pavement…literally.

Wearing a sign advertising “MIT grad for hire” for six months, he actually landed a job. And no, not at some hotdog stand. He got hired on as a senior manager at Weiser LLP, an accounting firm.

“I liked his resume,” said his new boss, Elliot Ogulnick. “I must admit, it was very innovative.”

Persky said that during his weeks spent as a walking ad on Park Avenue, he got several job interviews. “The publicity I got from the sandwich board [ad] encouraged me to set up a blog to document my experience,” he said. “It feels so great to be back at work. I went through some frustrating times, but every day I tried to be optimistic.”

And it paid off! Persky’s family (a wife and five kids), who relocated to Nebraska to be with her parents to save cash, are heading back to New York to reunite after the end of the school year.

Happy Holidays! Keep believing!

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The main theory during financial hardship is that when times are tough, other areas in the law will bloom offering more jobs to keep lawyers working as they ride it out. Therefore, according to this philosophy, boutique firms will crumble because of their lack of recources to create new positions while others dwindle.

And yes, some boutique firms have floundered during this economic crisis but others have thrived. Finding distinct advantages over their larger competitors….whether they focus on intellectual property, corporate securities or labor and employment–there are usually lower overhead costs, little to no major debt, flexibility regarding assisting their clients who need to cut legal costs, etc…

And speaking of cutting costs, many clients have swapped their big firm for a smaller one to do just that. “The bottom line is that I think these troubled times are creating very unique opportunities for boutique law firms because of the value that they offer,” said Steven Spielvogel, president of the International Network of Boutique Law Firms.

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Another gloomy day on Wall Street. Continuous layoffs are just reminding us all that we are still treading water. Last week, the Dow Jones was down nearly 340 points. Investors are nervous! And beginning this week, things just continue to get worse. Stocks did bunny jumps up and down all day long, ending with a stream of late-day selling that left the Dow lower by 223 points.

Curious to see if the nation’s troubled automakers would get a bailout, investors are hopeful that Senate Democrats are leaning towards using part of the $700 billion Wall Street bailout to help top carmakers: General Motors Corp., Ford Motor Co. and Chrysler LLC.

Stay tuned…

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Getting ready for his big move to the White House is Barack Obama, who I am applauding. On November 4th, he gave the world their hope back. Feeling lost, ignored and powerless for eight years, America is well on its way to being united once again. While we began to feel as if our voices didn’t matter, we now have proof that they do.

Although I am confident Obama is going to lead us in a much better direction, we the people have a lot of hard work to do. This Friday, November 7, 2008, Obama spoke to the world yet again, explaining that while he is still not “officially” president, his first goal is to “act swiftly to resolve [the financial challenge].

“Immediately after I become president, I will confront this economic crisis head-on by taking all necessary steps to ease the credit crisis, help hardworking families, and restore growth and prosperity,” said Obama. “I’m confident a new president can have an enormous impact.”

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