Like many of the massive financial institutions in the US that collapsed in the Fall of 2008, General Motors is said to be "too big to fail". However, declining sales and profits have lead to talk of the US government bailing out General Motors. This is in addition the the colossal $25 billion loan the US Congress gave the Big Three, GM, Chrysler, and Ford. Now, the Big Three are asking for $50 billion.

GM is warning that it needs this bailout as its end would spell the lay-offs of 266,000 workers.

The trickle-down effects that would be lost from GM or any of the other big automakers going under would be substantial. Parts suppliers, repair shops, and the already-struggling dealers would all take huge hits.

Sandy Baruah, acting administrator for the Small Business Administration warns of the dangers such a collapse would pose:

“A majority of new car content is produced by supplier companies located across the country and the world. If even one U.S. auto company
were to cease operations, it would impact not just that company, but the scores of supplier companies across the United States. This would
be an economic development and employment impact that would reach far outside Michigan.”

Of course, the auto manufacturers want us to think the end is near - they want us to belive their failure will spell the end of the American economy; that will a financial meltdown, the demise of the Big Three means economic death for the nation.