The President said General Motors did not propose changes that were sweeping enough to justify further large federal bailouts, and demanded "painful concessions" from creditors, unions and others as their price for survival.
The White House has also raised the possibility of a controlled bankruptcy to help GM "restructure quickly and emerge stronger" —uttering the term that industry and union officials have warned repeatedly could lead to the collapse of an entire domestic industry.
Is there a trade, downstream?
Obviously, the companies most affected will obviously be those most exposed to the auto industry, explains Karen Finerman. I’m talking companies like Lear, a supplier of auto seats. However, I would not get short. The trouble in the sector is already baked in.
I don’t think the auto industry is going away, says Guy Adami. That's not to say GM won't go bankrupt. However, I think the downstream plays still work, just not right now. I’d get long BorgWarner if you can get it in the teens.
If you want to play the sector make sure you also buy puts for protection, counsels Pete Najarian.
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Trader disclosure: On Mar. 30th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman's Firm Owns (MSFT), (RIG), (AXYS); Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Is Short (IJR), (IWM), (MDY), (SPY), (USO), (BBT); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Seymour Owns (AAPL), (BAC), (FXI), (EEM), (TTM); Najarian Owns (AAPL) Call Spread; Najarian Owns (BNI) Call Spread; Najarian Owns (GS) Call Spread; Najarian Owns (HUM) Call Spread; Najarian Owns (MS) Call Spread; Najarian Owns (PALM) & (PALM) Calls; Najarian Owns (POT) Call Spread; Najarian Owns (XHB) Call Spread; Najarian Owns (RIO) Calls