LCT Magazine
Posted on November 20, 2008

BIG 3 COLLAPSE WOULD BE CATASTROPHE: A leading analyst said today that if Ford, GM, and Chrysler file for bankruptcy, the American economy would violently contract. Full story and his words: 

A Deutsche Bank economist quantified the impact of the collapse of the trio on the American economy. Deutsche's Joseph LaVorgna estimates that if the auto-makers were to file for Chapter 11 bankruptcy protection in the first three months of next year, it could cause US GDP to shrink by at least 4% as auto production would fall by 30% to 35%. He also believes unemployment would immediately leap from its current level of 6.5% to as high as 8.25%.

Related Topics: breaking news

Comments ( 1 )
  • David Bastian

     | about 11 years ago

    Devastation is real. Support U.S. Auto Companies

More Stories