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Re: ford mustang 1988
Has your car ever had a catalytic converter replaced? What may be happening is the cat. is getting plugged up and the exhaust is staying trapped in the engine with no way out causing the loss of power and stalling problem. Disconnect your exhaust and run it and see if it makes a difference. If it does, replace the cat.
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A very common problem with the fords of this era was the negative battery cable connection. The cable has a tendency to loosen up where it is attached to either the frame or engine blck. The other battery cable, the positive one (red), runs very close to the exhaust manifold and pipe down near the starter motor and will sometimes make contact, melt the insulation on the wire and short out. I would recommend examining and either tightening connections or replacing the battery cables.
Being that this vehicle is a 1988 it is most likely still using an electric choke. When your vehicle is cold (even just not warm enough) it needs a richer fuel/air mixture to start which is what the choke is there for. When you turn the key the choke will automatically shut so the suction from the engine will pull fuel from all circuits of the carb. Anyways.. long story short for some reason it would seem your choke isnt closing as it should. This is generally just a hot wire thats connected to your carb.... maybe a short maybe its stuck open for some reason.. idk but that is where you should focus your attention. Hope this helps.
I would check the timing could have jumped a tooth on the timing belt/chain. Also check the rotor in the distributer make sure that it is not worn out. I have also seen a plugged catletic converter cause big time power loss and really strange problems