I’ve predicted that the auto industry was the next big shoe to drop in the economy. http://rightreturn.blogspot.com/2008/11/buddy-can-you-spare-25-bazillion.html
There are thousands of dealerships and their employees, suppliers, and others who will struggle as a result of this. There is no doubt that it will be painful. Unfortunately, it needs to happen if the American economy is to recover.
This may be just a sign of more bad things to come. For example:
1. It’s very possible the price of gas will rise. Nobody can accurately predict that and this is not something Obama or the congress can screw up. If it does, which is not an unrealistic expectation, the economy would suffer.
2. The cost of current energy will rise, especially if Obama pursues a cap and trade policy. Current energy will be taxed to fund Obama’s new “investment” in a “green” future energy economy.
3. Employers are very likely to be hit with new mandates for health insurance coverage, especially small businesses.
4. Tax hikes will come for individuals and small businesses earning over $250K. This will reduce overall job creation as these folks who have the means to hire see a reduction in their marginal income.
There are other ramifications of current Obama policies. I suppose it’s possible that things won’t get as bad as they could be. But maybe they could. I hate to write these things. I'm deeply concerned and I call it as I see it.