GM will be bankrupt within the next few months with sales down year-over-year 45% and burning through $2B/month. I expect the deficit to double to $20 Trillion during Obamas presidency, maybe more. The enormous cost of bringing home the troops by 2010 will be incredible, let alone the cost to repair everything. The bailouts and stimulous checks will continue ... car companies, airlines, banks, underwater home loans, etc. Where do these bailouts and stimulous checks end? Washington must do something about the lobbyists and pork barrel spending if they are going to have any chance of paying for all this.
If any of the Detroit 3 close, we are talking 12 jobs lost for every one of the car companies. My guess is Obama will negotiate consolidation among the three and the government will take ownership and financially back the remaining company. (Similar to the governments approach to the banks.)
Great Depression #2 is queued up to go AFTER Christmas just after Obama takes office. There will be record number of retail stores and restaurant chains closing after Christmas. Then, you will see hotel chains close.
Temporary socialism with the taxpayer money seems to be the direction the government will choose until the US can recover. When it does recover, it will be a COMPLETELY DIFFERENT PLACE.
POTENTIAL WILDCARD DURING OBAMA PRESIDENCY: If Israel attacks Iran or vice versa, another $10-20 Trillion will need to be added to our deficit. If that happens, the USD currency will take a parabolic move down to ZERO. That will be when we see inflation like Zimbabwe... where it takes 10 Billion dollars to equal 1 dollar. Hellish choas.