[Attention Surplus Disorder]

“This argument that a GM bankruptcy is imminent is ridiculous.”

Not knowing anything in particular about the situation, I’d generally agree with you. I didn’t give the claim in the article much, if any credence.

However, in light of what you said about financial vs mfg companies, I’d point out that “GM” also includes GMAC, their financing arm. And there, although GMAC is a lot smaller than GM, about 1/3rd the size if memory serves, we are still talking about a few tens of billions of dollars. Forget not that GMAC was actively engaged in the mortgage biz, not just financing cars.

So, I 95% agree with your take, but it’s still possible that GMAC could have a boatload of defaulted mortgages, and, as adroitly as they handle so many other things, maybe they are aren’t as sophisticated as our exalted bankster masters when it comes to hedging, declaring assets adequately marked to fantasy, etc;

[FredZarguna]

I think you are overlooking the fact that GMAC received a LOT of TARP money; GMAC went to that well at least three times that we're aware of. We will never actually know how much GMAC received -- it is a very cleverly hidden part of GM's bailout. We do know that their terms were more favorable than just about anybody else's. So I doubt they have short term debt they can't cover; although they might, if they've been hiding the extent of their exposure, which, clearly through the end of 2009 is exactly what they were doing.

Even so, I think this is baloney.

[think4yrsf]

Did a quick Google search and found this recent article in Forbes:

http://www.forbes.com/sites/louiswoodhill/2012/08/15/general-motors-is-headed-for-bankruptcy-again/

[nc28205]

>>> , I’d point out that “GM” also includes GMAC, their financing arm.

No, GMAC is separate from GM. It is now known as Ally Financial. GM has a captive finance arm known as GM Financial. In 2Q12, auto sales accounted for about 37B in sales and GM Financial was just 487MM. Even so, auto finance companies have been performing fairly well lately because used car values have been high, which limits loss severity even if the loan goes bad.