Get ready for a depression, car companies denied bailout money

Stock markets tumbled Monday as the rally that has sent equities surging for most of this month ground to a halt amid a jolt of worry over General Motors and Chrysler.

Investors feared the automakers may be forced into bankruptcy after the U.S. government said the plans they've submitted are not acceptable to receive more federal bailout money.

Financial stocks slumped in Toronto, joined by energy and base-metal shares, as the price of crude oil fell almost US$4 a barrel.

U.S. president Barack Obama raised the possibility of a controlled bankruptcy for GM or Chrysler or both to help them "restructure quickly and emerge stronger."

The federal governments also said they have not seen realistic restructuring plans, but they will go ahead with up to C$4 billion in loans to keep the Canadian divisions of GM and Chrysler afloat.

"Sometimes, unfortunately, folks need a reason to sell and they haven't necessarily been given it over the past week or so - other than the reason of just saying that we have rallied."

"Despite all the problems that are filtering their way through the U.S. economy right now, the U.S. dollar is still the world's primary reserve currency."