[jazusamo]

Exactly...All GM bondholders were basically wiped out. I've a relative that her retirement was mostly GM bonds and now it's mostly gone.

[KC Burke]

As we all saw at Enron’s collapse and much earlier as well, the answer is Deversify, Deversify and Deversify.

When I served on a Trust Fund Board, we were taught that no matter how good an investment or fund was, the board would be smart to not have it amount to more than 2.5% of the total.

Likewise, you can’t do all your precious metal holdings in Gold. Its good to have some brass and lead.

[Boomer One]

Not to mention banks that had invested money market funds into GM bonds in order to give a competitive and fair return to depositors. When the bondholders were forced to take 27 cents on the dollar, banks (shareholders) ate the losses to keep depositors happy. And yet they are the “bad guys”. This entire fiasco is why I will not purchase the Corvette I always dreamed of buying nor any other GM car. My son-in-law, a lifelong GM supporter, just bought his first Ford.