[nc28205]

>>>"My source inside the White House is warning that the collapse of GM is imminent it is just a matter of if they can hold out until after the election."

This argument that a GM bankruptcy is imminent is ridiculous. First of all, bankruptcies for large industrial companies generally develop over several years, as oppsed to financials which can occur quickly. In the case of GM, people were talking about bankruptcy for several years before the financial crisis finally triggered it. I don't hear "credible" analysts discussing such a possibility in the medium term, let alone within a few months. Second, a review of GM financials shows cash and marketable securities have increased year to date. I don't know the term structure of their long-term debt, but unless they have a large slug of debt coming due soon which they are not able to refinance in what a relativley issuer friendly environnent, there is no reason to think a bankruptcy would happen in the near future.

[upchuck]

If GM goes down anytime soon that will mean GM has grossly lied to its stockholders which will mean GM will be in big trouble with the SEC.

nc you’re right. Publicly traded companies don’t just suddenly go bankrupt. bray, I’d be questioning my source very closely.

[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]

This article is ridiculous. GM still has serious problems, and their European Division is an albatross, but they aren't going to go belly up anytime soon. In a decade their US operations will be either vestigial or nonexistent. But bankruptcy within months? No.

I would take issue with the claim that this is an issuer friendly environment. Comparatively, I can't agree with that assessment.