Consumer confidence is sapped

Consumer confidence is sapped."As consumers become more confident about the economy, about their own jobs and net worth, that will start driving us out of this," said Chris.Roughly half of all existing homes sold in March were foreclosures, and a similar share of buyers were first-time homeowners. "If problems arise with unemployment there, that will certainly effect the housing market. That is about double the level that suggests a more normal supply and demand balance."Once things start to move, there's going to be incentive for more supply to come onto the market as well as the fact that foreclosures are still going up," said Keith Hembre, chief economist at First American Funds in Minneapolis, Minnesota.Hembre roughly estimated more than one million additional housing units could come back on the market once moving rates pick up again This extra inventory is "going to be a huge issue ... it would certainly cap any upside on prices." Housing Market.

*GM to cut 190,000 vehicles from Q2, Q3 production Stocks  |  Bonds  |  Global Markets  |  Mexico  |  Bankruptcy *Cites high inventory levels, risk from Delphi situation *Shares of major GM suppliers plunge (Adds details from GM announcement, analyst comment, supplierstock price reaction, bylines) By Kevin Krolicki and David Bailey DETROIT, April 23 (Reuters) - General Motors Corp GM.Nsaid on Thursday it would slash production over the next threemonths to cut its inventory of cars and trucks and avoid therisk of an "uncontrolled shutdown" from the financial crisis atbankrupt supplier Delphi Corp DPHIQ.PK. By shutting down 13 assembly plants for as long as nineweeks, GM will cut its North American production by 190,000vehicles in the second and third quarters. The action represents one of the deepest cutbacks by any ofthe major U.S. automakers during a four-year downturn that hasdriven the industry to the brink of collapse.

Analysts said it also will have the effect of choking offGM's revenue and adding to the financial stress on its keysuppliers at a point when the automaker is seen as facing agrowing risk of a government-financed bankruptcy. "In our view, these actions increase the financial riskprofile not just for GM but for the industry in general," S&Pequity analyst Efraim Levy said in a note for clients. "We also believe a GM bankruptcy filing is becoming morelikely, as the chances for settlement with various stakeholdersdiminishes." The shutdowns of the 13 assembly plants from Michigan toMexico range from two weeks to nine weeks. Collectively, theplants employ about 21,000 workers who will be left temporarilyunemployed during the time the plants are idled. GM will also reduce output at the stamping and powertrainplants that provide components to the assembly plants,affecting an unspecified number of workers. The news dragged down shares of auto parts suppliers, whichdepend on GM for a significant portion of their revenue.

American Axle & Manufacturing Holdings Inc (AXL.N), whichrelies on the automaker for three quarters of its sales, closeddown 21 percent, or 28 cents, to $1.07 on the New York StockExchange. Shares of Lear Corp (LEA.N) dropped nearly 10 percent, or 9cents, to 84 cents, while shares of Tenneco Inc (TEN.N) fell12.5 percent, or 32 cents, to close at $2.24. GM said it expected the production shutdown would cut itsU.S. dealer inventories by almost 32 percent to 525,000vehicles by the end of July. GM North America President Troy Clarke said the automaker'sdecision to shut down production was not intended to preparefor any bankruptcy filing. "These really are just productionschedule adjustments," he told reporters He said GM executives had told the U.S. Treasury's autostask force of the production cutbacks in advance, but they hadmade the decision on their own.