Not to mention the millions of former employees who would lose all heathcare and pensions.
And the company that makes their windows would die without anyone to sell to.
And the company that makes gas caps for them would, too.
And the company that makes their ignition coils would, too.
It's not just the big guy that goes... a collapse of General motors would send the unemployment rate skyrocketing, which WOULD affect the market negatively.
Bren, Chrysler is in bankruptcy, it has been for quite some time now; where have you been? The reason the markets have reacted mildly is the way the case has been handled by the government, preventing GM from going bust.
I have a big stake in General Motors; I have several friends and family members who have pensions through the company, as well as healthcare, and I know there are millions in the same boat as I am. And that is why GM must not fail; another 1.5 million people can't lose their income.