GM and Chrysler prepping for bankruptcy?

Editor's Note: The following report is excerpted from Jerome Corsi's Red Alert, the premium online newsletter published by the current No. 1 best-selling author, WND staff writer and columnist. Subscriptions are $99 a year or $9.95 per month for credit card users. Annual subscribers will receive a free autographed copy of "The Late Great USA," a book about the careful deceptions of a powerful elite who want to undermine our nation's sovereignty.

Chrysler and General Motors appear headed for bankruptcy, with the Obama administration likely to give up trying to bail out Chrysler by the end of April, followed by abandonment of GM by the end of May, Jerome Corsi's Red Alert reports.

"The failure to prevent Chrysler and GM bankruptcies will be a serious blow to Obama administration efforts to stimulate the struggling economy," Corsi wrote.

When two of the Big Three automakers do declare bankruptcy, thousands of workers will be unemployed, thousands of firms that supply automakers with manufacturing parts will face an uncertain future, and thousands more retired UAW workers will see their pensions and retirement health care benefits hang in doubt.

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The bankruptcy of Chrysler and GM will send the economy into even deeper recession, Corsi noted, punishing states like Michigan with large numbers of people who voted for President Obama in 2008.

"If the Obama administration ends up sending GM into a government-managed bankruptcy, the likelihood is that the taxpayer will once again end up with the loss," he wrote, "after the Obama administration pays off election year debts to the UAW by agreeing to provide a government guarantee to the payment of UAW 'legacy' pension and health care benefits to retired GM workers."

The Obama administration has continued to keep Chrysler in business with bailout loans that now total $4 billion.

GM and Chrysler have received approximately $17.4 billion in government bailout funds so far.

Still, the Obama administration is willing to pump another $500 million in taxpayer bailout funds into Chrysler through the end of April and another $5 billion through the end of May to keep GM afloat, according to Reuters.

General Motors rocked the Obama administration by announcing plans to shut down most of its plants for nine weeks this summer, in a move which appears to be a last ditch effort to prevent declaring bankruptcy.

GM sent shock waves throughout Wall Street by announcing the company will miss a deadline to repay $1 billion in debt due June 1.

Today, April 22, GM shares fell another 1.2 percent to $1.68 in midday trading as rumors of an impending GM bankruptcy depressed the company's share price.

Jerome Corsi's books "The Obama Nation" and "Unfit for Command" have topped the New York Times best-sellers list.

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Corsi received his Ph.D. from Harvard University in political science in 1972. For nearly 25 years, beginning in 1981, he worked with banks throughout the U.S. and around the world to develop financial services marketing companies to assist banks in establishing broker/dealers and insurance subsidiaries to provide financial planning products and services to their retail customers. In this career, Corsi developed three different third-party financial services marketing firms that reached gross sales levels of $1 billion in annuities and equal volume in mutual funds. In 1999, he began developing Internet-based financial marketing firms, also adapted to work in conjunction with banks.

In his 25-year financial services career, Corsi has been a noted financial services speaker and writer, publishing three books and numerous articles in professional financial services journals and magazines.

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