The spin is that the market is spooked that Obama will not bail out the auto companies. However, Obama is in the pocket of the unions, who are the losing party in bankruptcy. Obama will replace Wagoner with a union-friendly CEO and then bail them out.
I would have thought the market rumble would be that they are spooked that the big 0 will start trying to micromanage other industries and start firing other CEOs.
“Wagoner with a union-friendly CEO and then bail them out.”
Bet on it.