Collateral damages of GM's and Chrysler's bankruptcy:

Discussion in 'Economics' started by HeSaidSheSaid, May 14, 2009.

  1. cascade of failures:

    0) suppliers to collapse

    1) triggering more job losses in service businesses like banking, car dealers, restaurants, gas stations, home improvement businesses...

    2) Straining the cities and states bugets

    3) decreasing in tax revenues (both state and fed level from the collateral damages)

    5) Retail (auto parts, supermarket, shopping centers, department stores, the whole community)

    4) US GPD has seen its top (in purchase power term)

    6) probably some of the manufacturing jobs permanently lost

    7) Less jobs, less credit, less money to buy house(s)

    8) Will the the Pension Benefit Guaranty Corporation and Medicare bail out the GM and Chrysler pension funds like they did for the Airline companies?

    9) it will definitely take longer for US economy to bounce back up this time.

    "what was good for our country was
    good for General Motors, and vice versa.” ----
    President Eisenhower’s Secretary of Defense