The US auto industry is coming apart at the seams, says Eric Roseman. The ‘Big Three’ are bleeding profusely, and face bankruptcy without a government rescue. If one of General Motors (NYSE:GM), Ford (NYSE:F) and Chrysler is allowed to fail, Eric says the stock market will crash through its 2002 lows. This means investors should stay underweight stocks for the time being.

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In 1955, U.S. manufacturing was approximately 55% of the nation’s GDP. Today, manufacturing is barely 15% of GDP as the United States and other industrialized countries continue to transition to service-based economies. Unfortunately, the backbone of American industry is now coming apart at the seams and desperately hungry for a government bailout.

In 2004, I predicted that one of the Big Three auto companies would fail in a few years. Though not a bold forecast by any measure - the autos were

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I hate to be the one to yell "FIRE" in a crowded theatre. But the time for keeping quiet has long since passed. The time for ignoring the gathering clouds of smoke is over. It's time to sit up, pay attention, and get your portfolio the heck out of harm's way ... because we have a full-scale, five-alarm, inflationary wildfire on our hands. Allow me to walk you through the overwhelming, undeniable evidence ... Import prices are soaring at an astronomical rate The government's policy of ignoring the dollar's decline is leading to astronomical increases in the cost of imported goods. In the month of May alone, import costs jumped 2.3%. That came on the heels of a 2.4% rise in April and a 3% increase in March. But the year-over-year comparisons are even ...