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By Jason Stipp | 11-23-2010 04:41 PM

Five Good Items on the Market's Menu

Morningstar markets editor on a reviving domestic auto industry, gravy in corporate earnings, a calmer market, and a recovering consumer.

Jason Stipp: I'm Jason Stipp for Morningstar and welcome to a special Thanksgiving edition of the Friday Five.

There's a lot on the market's menus this holiday season, including a few items to be thankful for. Here with me to offer the rundown is Morningstar market's editor, Jeremy Glaser.

Jeremy, thanks for joining me.

Jeremy Glaser: Jason, I'm always very thankful that you join me on the Friday Five.

Stipp: What do you have for the Friday Five this week?

Glaser: Well, as you may know, my favorite part of Thanksgiving, like a lot of people, is the eating. And I think that the things I prefer are mostly food related, being that we didn't turn into pumpkins when we got to the auto bailout, that monetary policy remains easy as pie, that we've had a lot of gravy in corporate earnings, that the Tryptophan from the Turkey seems to be keeping us pretty calm, and finally that we're being stuffed with relatively good news about the consumer.

Stipp: GM's recent IPO and our analyst take on it seems to show that the domestic auto industry, at least in GM's case, did seem to benefit from some of the government assistance and may have a brighter outlook. What's your take on that?

Glaser: We talked about this a little bit last week, but I was extremely skeptical when the auto bailout was happening at the height of financial crisis. It seemed like we were throwing a lot of good money after bad and that was hard to see how General Motors and Chrysler were ever going to become profitable institutions again.

But I've been proved wrong. Really the kind of forced bankruptcy and the rushed bankruptcy allowed these companies to re-tool and has created a really blossoming domestic auto industry, and along with that the ecosystem of the suppliers and the dealers and the other people who service the auto industry.

So it's hard to imagine that without that bailout, without that bankruptcy, how many jobs would have been lost. We probably would have lost the domestic auto industry forever. I think, Ford certainly would have gone under. So I think, we're thankful that it did happen, that it did work, even if I was and a lot of other people were skeptical of it while it was going on.

Stipp: In national news and on the economic front, the Fed had to push the accelerator a little bit again recently hoping to stave off deflation. Do you think it's really going to be as easy as pie with the Fed's additional stimulus?

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