is closing a dealership here and this is general motors that has got to get back to work. >> and gm indicated it will use some of the loan money to help develop it's chevy bolt and extend vehicle vehicles throughout late 2010. live in los gatos, abc 7 news. >> thank you very much. investor warren buffet cast a huge vote of confidence again, by buying $3 billion worth of preferred stock in general electric. he has the option of buying another $3 billion in common stock at $2 a share, below what it's selling for today. that is about half of what it sold for a year ago. >> in these grim economic times, some retail yirs are already offering holiday bargains. christmas shopping began today as stores like walmart. the hope is that early mark downs will get spending money now before things get worse. here is lyanne melendez. >> wall street today reduced prices on popular toys. a strategy the giant retailer hopes will push christmas sales up. >> there is a limited amount 6 6 -- of money available for consumers to spend. so those that get in early have a better chance of getting more than those who get in late. > a recent shopping survey conducted on behalf of walmart shows how the recent economic down turn may affect the way you and i shop at christmas. that told walmart and other companies that consumers plan to buy less expensive items and will do so earlier than in prus years. >> this is going bad. it is. that the money? >> it's money. of course. everybody is holding onto it, whatever they have. > always bargains. >> yes. >> always. >> yes. yeah. that is the only way to buy things today. >> small shops like noe valley small fries wil find it harder to compete with big stores. >> anybody who can -- cares about local schools or about their local streets should care about trying to shop locally that. is where tax dollars will stay. >> the national retail federation predicts sales are expected to grow at the slowest pace in six years. because of that, part time jobs over holidays will be harder to get. thomas is with lamb power. > we're finding the need foremost of them saying there are not going to have a large need this year for additional staffing. so that impacts us as well. >> les jobs will also mean less money to spend at christmas. in san francisco, abc 7 news. > and what happens over the holidays may depend on what's happening in washington now. let's take you back for a live look at the us senate. the vote has begun. role call on this $700 billion bailout package.

san francisco tonight that it is vital that relations between the united states and russia remain as friendly and open as possible. >>> after 85 days of gridlock, governor schwarzenegger finally signed the $143 billion budget today. but there was no traditional signing ceremony. the governor said there's nothing to celebrate when a budget comes in three months late. schwarzenegger immediately exercised his line item veto power to cut another $850 million from the budget. he slashed funding from social service programs including hrv prevention -- hiv prevention and domestic violence and aide for senior sit -- citizens. >>> these are not ordinary times. they predict worries over jobs, housing and the stock market will force shoppers to cut back. lian kim is in the newsroom and it is a pretty bleak forecast. >> it certainly is. retailers are already suffering from a weak fall shopping season. while it is not a predictor of holiday sales, it is an indicator of how consumers are willing to spend. with high gas prices, high food prices and high unemploy meant, it is no wonder many stores aren't jam packed these days. >> i was in the stores today and not as many people shopping. >> the situation isn't expected to be much better for the holidays either. the national retail federation, a washington-based trade association predicts holiday sales will rise a modest 2.2% from a year ago. that's the slowest pace in six years. many shoppers we talked to say there is no doubt they will be scaling back on their holiday shopping. > certainly lesser. stick to the necessities. >> i'm single so i buy myself lots and lots, but maybe this year less. >> storeshave already scaled back on inventories. imports at the port of oakland are down 11% from a year ago due in large part from the weak dollar and the mortgage cris. eugene is a buisness professor at the university of san francisco. >> if the cost of money goes up even a slight bit, it is going to reduce inventories, and therefore fewer items to buy and less sales and revenue. >> but retailers will be doing everything they can to get shoppers to spend. likely of onering pre -- offering pre discounts and sales. they say this holiday season though will be no different. >> i feel comfortable with my job and see how everything will play out. right now i am not to worried about it. >> i am not worried about the economy. i think it has its ups and downs and it will come back up again. >> stores like target are preparing for what's to come. the chain is focusing on gifts under $25 in its holiday mark ceght. in the newsroom -- marketing. lian kim, abc news. >> thank you very much. >>> we enjoyed summer-like weather in the fall again. >> absolutely magnificent. sandhya patel is here with the forecast and the highs today, sandhya. >> yeah.