08-22-2008, 03:21 PM
An interesting article outlines the prospects of GM in a Chapter 11 bankruptcy situation. Wouldn't be surprised if Statik references this article soon.
Link (http://biz.yahoo.com/usnews/080822/22_how_bankruptcy_would_wreck_gm_and_chrysler.html )
Most of the article seems to be well reasoned but I don't agree that GM going down would have a minor impact. I believe the psychology and real impacts would be tremendous. Direct employees plus suppliers' employees as well employees at tertiary companies losing their jobs could reach 300,000 or more. I don't see how this alone could be insignificant or isolated and the psychology affects scare me more. I believe our economy is much worse and more vulnerable that than most people think, but this is better than the opposite. If public opinion swings more pessimistic than current reality then we are in deep doodoo.