Chrysler's Collapse and the "New Normal."
Down 53% in December, Chrysler, the weakest of the weak sisters, continues its dismal demise. It will not get better for Chrysler, ever. It has reached the end of the make believe. In 2009, the money runs out and companies like Chrysler finally die.
Chrysler's demise is not a good thing. And the consequences of it and others like it will be much more disruptive than people imagine. But the escape from reality (which is what the 3rd and 4th quarters of 2008 were all about) is over.
The facts are these: The consumer is broke. The government is broke. The financial system is bankrupt. 2009 is when the consequences of those three facts create what Paul Kedrosky calls "the new normal."