Chrysler may be stumbling towards bankruptcy: JPMorgan

Friends,
Regarding my last post here I am again getting news which are looking very very Ominous on US Economy.Here are some excerpts I read today somewhere else...

Read on:

Faced with soaring gas prices, a sputtering economy and a rapid US market shift away from trucks, the US auto industry's weakest player, Chrysler, may have to file for bankruptcy or sell its storied Jeep and Dodge Ram brands as early as next year, JPMorgan said Thursday. JPMorgan auto analyst Himanshu Patel dismissed the possibility of an imminent bankruptcy at GM, saying in a conference call with investors and media that such fears ``are completely overblown.'' The day before, GM shares slid to a 54-year low after Merrill Lynch auto analyst John Murphy wrote in a note to investors that a GM bankruptcy ``is not impossible if the market continues to deteriorate and significant incremental capital is not raised.
Patel said the situation at Chrysler LLC is far more perilous because it has limited assets to raise cash and is more heavily reliant on trucks and on the North American market. Chrysler sales fell 22 percent in the first six months of this year. Chrysler has had to release little financial information since the private-equity company Cerberus Capital Management LP bought it last year, but Patel estimated the automaker will burn through $4 billion this year and could be forced to file for bankruptcy protection or sell off parts of its business in the second half of 2009 if industry conditions don't improve. Patel said it's difficult to predict the most likely outcome for Chrysler, but he said South Korean or Chinese automakers covet Chrysler's U.S. distribution network. A bankruptcy filing could be a hit to Cerberus, which invested $6.1 billion in Chrysler as part of its acquisition and also backed a $500 million line of credit that Chrysler tapped last month.
My comments:

What is happening in US,man?Do anyone has clue?Are anyone serious about what is happening in USA?One by one a new skeleton is coming out of cupboard and Ben or anybody do not know from where the next casualty is going to come?I just wrote an article here previous day about crude prices going bersek and warned that it can make major problem which cannot be sloved even in decades…..
I named GM and Ford which are near to sink but now the name of Chrysler has also surfaced which shows that my concerns cannot be ignored and something should be done here.It is obvious that with Gas soaring at $4.50 and has the capacity of going to even $8 per gallon , when crude can reach $200 and over then who will buy this big cars which we are seeing them on road now?
Now we will take the names of Financial Institution and other co which are almost on a brink of Bankruptcy or already sinked…
1) Bear Stern Ltd ….already closed
2) Lehman Brothers….on the verge of collapse
3) Citi gr……on the verge of collapse
4) General Motors…..on the verge of collapse
5) Ford Motors………on the verge of collapse
6) Merill Lynch……already writing off subprime losses…don’t know when a big news of bankruptcy comes out….
7) UBS already writtenoff big amt…
not talking of Airlines sector......
The point here to emphasis is , no one knows what is going on in this big Financial Institution and when someone will announce another major writeoff and declare that they are over….
People who had put money in IRD and 401 in this finance co , their money are at stake.I am here in USA since 2nd Feb 2008 and I have seen here in US stock market that not a single share is available cheap.A turnaround and the stock is over 15 P/E!
If the master of the US economy are having sound sleep then they should haven’t that……This is a Life and Death question for entire USA and the entire world.US itself will sink but will also take the whole world in water drowened…..
How can one say that Dow is going cheap?Dow is down by just 15% while India and China are down by 40 and 50% respectively then which market is cheap is anybodies guess….It is not that valuations are still high….There the prices have corrected more.. then enough and that is because of constant selling by Hedge funds in Indian market.I have learnt that Hedge funds sold Rs 3100 cr in last 2 days in India.
India with crude and commodities bull run can slow down a bit , say like 7.5% GDP but it will be way ahead of US which will have already a negative growth and other Europians economy which are growing at around 1-2% rate…..
I still stand with my view that India and China are the two best destination for overseas investors to look at and this is the best time to invest in both the economies……
Ofcourse to find out the sectors and stocks for great , good and safe return one must have some experienced player who knows the Indian market since long and able to understand the economy.