Comments on: “GM is on the highway to hell, there is no signal there is a way out for them”

By: capeplates

capeplates — Mon, 18 Aug 2008 15:14:44 +0000

Don’t count on any payout in the event of them going down – the Northern Rock fiasco proved that the small investor will get scewed by the government whilst the big fish walk away with bulging pockets

By: mykeliam

mykeliam — Mon, 18 Aug 2008 12:46:47 +0000

Wonder how many people are retaining law firms for the eventual law suit against the BOD and Executive management who walk away with millions free and clear? I know if I owned stock in any of the big three and was a lawyer, I’d be starting the class action already.

By: Rix

Rix — Sun, 17 Aug 2008 04:44:35 +0000

Bondholders will recover some because post-retirement health care expenses are not as senior as pensions. Pensions get first call, then secured senior debt. Then secured junior debt. Then unsecured debt and health care. GM pensions are actually overfunded. It’s everything else that is the problem.

By: 50merc

50merc — Sat, 16 Aug 2008 16:06:28 +0000

Gee, you think Wall Street is figuring out that companies with negative equity, huge yearly losses and doubtful survival prospects aren’t good places to invest your money?

Well, is Ford a better bet? From the article:
“Ford, the second largest U.S. automaker, shows the same recovery rate at 26.5 percent, down from 37 percent at the end of June, CMA data show. Combined with Chrysler LLC, the probability that one of the three car companies will be unable to fund its business over the next five years is more than 95 percent, Felsenheimer wrote in a note to investors last week.”

I think Blackjack gives you better odds.

By: yankinwaoz

yankinwaoz — Sat, 16 Aug 2008 16:02:34 +0000

How will a bond holder get 26 cents on the dollar? Isn’t GM liable for billions in pension and health benefits that exceed its value?

By: briandfromo.p.

briandfromo.p. — Sat, 16 Aug 2008 14:58:11 +0000

A cash infusion from a bank will come with plenty of strings attached such as a sound, measurable, strategy for getting out of the mess they’re in, higher interest rates, and dare I say it, the lending institution may require some leadership changes (Wagoner and others) so the BOD of GM can prove they are serious about a turnaround.

By: Velvetsmack

Velvetsmack — Sat, 16 Aug 2008 14:48:05 +0000

Slowww Painfulll Deathhhh.

OT: Thanks for AC/DC reference. I’ve now spent the last 1/2 hr in Wiki reminiscing. “Black Ice” comes out in Oct. I wonder if ACCA DACCA thought of GM when they decided on the title.

By: mel23

mel23 — Sat, 16 Aug 2008 14:02:18 +0000

I wonder what Rick’s ‘plan’ is for going to the credit well when they absolutely need a cash infusion in the next few months. What can reasonably be expected to change for the better from GM’s perspective by then? Unless something significant does, I can’t see anyone loaning them billions to keep doing what they’ve been doing wrong for so long. The alternative is selling stock, but that has drawbacks too. Can’t wait to hear the bystanders tell us it’s all going to be OK since they have the best possible team in place, and just need a little more time for the new models to come out.

By: Dr. D

Dr. D — Sat, 16 Aug 2008 13:47:28 +0000

…and if I recall correctly there is a large sign as one enters town that says: Welcome to Hell…michigan.
There is extreme everything these days, especially extreme incompetence. The road to hell is built by those who wish to go there.

Shame, Henry Ford and Louis Chevrolet were friends.Henry assisted Louis in automotive areas that Louis couldn’t get correct. Now not even Henry Ford can help GM.

The prognosis as Dr. D. sees it for GM is bye bye GM and the body parts go here, near and there.

By: Pig_Iron

Pig_Iron — Sat, 16 Aug 2008 13:16:03 +0000

Hell, Michigan:

The latitude of Hell is 42.434N. The longitude is -83.985W. Elevation is 889 feet.