No joke, mark this post. Obama will address the nation and the market will rally off this news. GM as the great American icon, it's bankruptcy will be seen as the 'bottom'. Chrysler is doing better than every in bankruptcy. Even the hint of GM bankruptcy a few months ago was enough to drive the market down a few hundred points. Times have changed, don't fight the Fed.
Then only reason the GM bankruptcy will have no immediate effect on the market is that the stock has already reached penny status--the lingering pain is from all those Mom and Pop stores put out of manufacturing business because they too now must go belly up.
The happyness crowd will look at the immediate effect however and be relieved.
How many business bank loans will now go belly up as a result will affect banks, but not immediately.
In short, there will be more rearrangement as a result of the Russell 1000/2000 rebalancing on close of business Friday than anything coming out of Detroit this week.