On Thursday, April 30, 2009, Chrysler filed for Chapter 11 bankruptcy protection. Tomorrow, Monday, June 1, 2009, GM is expected to file for Chapter 11 bankruptcy protection in New York. This marks the largest bankruptcy filing in the history for an industrial business. This can have catastrophic effects in our financial markets as GM employs 230K people and builds over 20K vehicles per day. Just as when investors thought the market was turning itself around, this can eventually end up testing new lows in our financial markets.
As mentioned in my earlier posts, the auto industry needs to re-structure themselves. It was only a matter of time until the "big" companies fall under. The theory of "too big to fail" no longer exists in today's global market.
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