Gm Dead In The Water

[hypnodoc]

This arrived via email a day or so ago.

It looks like GMs finance arm that was propping them up have shot themselves through the foot big time. Maybe they might sell out to Toyota for a dollar. It doesn't surpise me, I spent all of feb in the US and everybody was moaning about how bad things were getting, apparently bankruptcy is running 80% higher than it was during the great depression, doesn't auger well for Ford or GM. Then again looking at the cars they turn out over there compaed to the Nissan and Toyota imports its no wonder they are running a losing race, their average sedans are way below avarage compared to what we get.

G-MAC, 'Sets Us Up' the Mortgage Bomb; $1 Billion Losses From One Firm This Quarter

May 3, 2007 (EIRNS)--Some investment banks' estimates of $20 billion in total losses in the mortgage-backed securities markets, were exposed as far too low; one major firm alone lost nearly $1 billion in just the first quarter of 2007.

The three top credit-rating agencies all downgraded their outlooks for Residential Capital (ResCap, part of General Motors Acceptance Corporation or GMAC) to ``negative,'' after the Bloomington, Minnesota mortgage company acknowledged its mortgage losses on May 2, according to the Minneapolis Star-Tribune. ResCap lost $910 million, and is laying off 1,000 employees.

GMAC, which used to be the financial engine pulling up GM's auto operations, is now transformed by the mortgage collapse into a big money-loser, half-owned by GM and half by the huge Cerberus hedge fund.

[SCRIBR]

... and macquarie bank's net profits up 60% to 1.5 billion

looks like the are either in the wrong business... or they are doing business wrong!

[Desert_phantom]

Not good.

Competition is vital, means we get better cars.

It would be a huge loss to all of us if one of the big american manufacturers were to go down.

[Guest newl]

Combine this with Chrysler being sold off and things aren't looking all that crash hot.

[TurboDewd]

I wouldnt fret because the US govt would ensure that a company like GM wouldnt go under, too much national interest and pride is at stake.

Remember after 9/11 the govt ensured the airlines wouldnt go under.

[Guest newl]

pfft..governments should keep their noses out of businesses business.

[TUFXRT6]

From what I understand even though the numbers look bad, they are actually improving.

I believe GMAC have just about cleaned up the insurance & employee sections of the business.

[Venom XR6]

Ford Credit made a $250 million dollar profit in the first quarter, so they went through this unscathed.

[Antisocial]

  newl said:

Combine this with Chrysler being sold off and things aren't looking all that crash hot.

Especially if its the same Cerberus that bought Chrysler, which co-owns this albatross with GM....

[hypnodoc]

I think that may have been the case until Cerebus went down. Perhaps they were just hesitant to let anyone know until there was no option. Toyota wll always snap them and their debt up for $1 or so. I also don't think the US govt is in a position to bail even themselves out after the cost of the Iraq war. It is more than obvious with Chrysler Ford and GM that the US car makers are on their knees.

  TUFXRT6 said:

From what I understand even though the numbers look bad, they are actually improving.

I believe GMAC have just about cleaned up the insurance & employee sections of the business.