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Chrysler Will Go Bankrupt

Chrysler will declare bankruptcy early in 2009. Cerberus Capital Management will not choose government money to restructure Chrysler and will see no profit in the Chrysler's future. This would send approximately 100,000 Americans to the unemployment office.

Here's some of the many reasons why this will happen:

a.) GM will not be in a position to purchase Chrysler from Cerberus and taking Chrysler just for the sake of getting access to her $9 or $10 billion in cash reserves will not be worth it as GM would just burn right through those funds in a few months anyways.

b.) The public mood is such that a no-strings-attached bailout to Chrysler will just not happen. The public could absorb 100,000 job losses easier (but not without pain) than giving more money to a money-losing company. No politician will touch that poison pill without attaching HUGE registrations and conditions to it. And as I said before, that just won't be worth it to a company like Cerberus who owns other companies, companies that actually make money.

c.) Renault and Nissan have already backed off of purchasing parts of Chrysler and are VERY unlikely to come back without incentives.