Anyone post this story? About General Motors going BANKRUPT?

The Death of the Dollar

By Jason Hommel
March 18, 2005

snip

But the story is worse than that! GM has $300 billion in debt http://finance.yahoo.com/q/ks?s=GM

...and has a market cap, now, of $16 billion. See the problem there? The bondholders could buy the company nearly 20 times over if they used their money to buy stock instead of loan it to the company. The implication is clear--that GM is headed towards bankruptcy, and will default on the bondholders, who will then own a company worth less than $16 billion dollars!

Foreign nations are all sounding the alarm already that they will be selling U.S. bonds to diversify the holdings of their central banks: Russia, India, China, South Korea, Japan... what major foreign nation is left to buy them?

A tsunami of dollar selling is about to begin, and will make the recent dollar decline seem like a small bump in the road.

It may take a few months for this to play out. You may have time to buy silver at under $10/oz. for a few more weeks or months. But after GM declares bankruptcy, which may take between 3 months to a year, get ready for the dollar to crash by more than 90% in the following 6-12 months.

more...

http://www.kitco.com/ind/Hommel/printerfriendly/mar182005p.html

For those who are looking for something more substantial than Michael Jackson, Terri Schaivo or the latest MSM junkfood, this is something worth chewing on.

Loans, in other words. Reporting the total debt sum absent that little fact shoddy at best.

Also, the market cap value has virtually nothing to do with the value of the corporation. It's just what the stock market thinks.

I'm not too familiar with how they cook their books. Why would a loan be considered a debt? If it's money they are owed, rather than the other way around...you'll have to link me with the facts on that.

Because I looked here:

http://finance.yahoo.com/q/ks?s=GM

I can't seem to find where they list the % of debt as loans.

Only about $32 billion of that 300 figure is related to vehicle operations, I assure you.

Not an insignificant amount, I'll grant you. But in GOOD years, the portion of debt that's insurance and finance is even GREATER.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=1334364&mesg_id=1336416

Article posted by DUer fedsron2us in the Stock Watch Thread in LBN.

Julie

Thanks JNelson6563!

Here's a good nugget:

General Motors Corp.'s bonds extended their recent losses as concern over the company's ability to pay back billions of dollars in debt continued to send shockwaves through the global corporate bond market.

General Motors is a benchmark bond issuer, being the world's third largest corporate borrower with $114.5-billion (U.S.) in outstanding bonds. Much of that debt may soon fall below investment-grade status among the most influential credit rating agencies, relegating the once venerable GM to "junk" bond status. Junk bond issuers must offer higher rates of interest to attract buyers.

While major institutional bond holders typically enjoy the luxury of staying away from non-investment grade credit, the vast amount of General Motors debt on the market and already in institutional portfolios makes that policy problematic, Mr. Palombi said.

GM's total consolidated debt outstanding was $301-billion on Dec. 31, 2004, compared with $173-billion for Ford Motor Co. By comparison, Standard &Poor's estimates that Canada's total outstanding federal debt is $363-billion.

more...

http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050323/RGMBONDS23/TPBusiness/MoneyMarkets

Pardon the ignorance. I've only bought stocks.

develop a relationship with them and get some gold and silver NOW!!! I have been saying this for 4 years to everyone I know.

How the fuck does one buy that shit?

... buy metal (coins, bars, ingots) from a retailer, or you can become a trader yourself (which I hear isn't exactly easy, though not impossible).

The hard part in either case is coming up with enough cash to make a financial difference in your life with this investment.





Also, the really rich have already made the big money in this market. They shifted their personal billions to precious metals starting in summer of '02. Increasing the demand for gold or silver now puts more of your money into their pockets. They'll be happy to sell you some of the metal they bought 3 years ago.

... I would expect the Bushies to arrange a bail-out, similar to Chrysler's in 1980. After all, who is Andrew Card? Formerly, GM's VP for lobbying.

These days, such a bail-out would just be converting corporate debt to government debt, and it might forestall some of GM's problems, but wouldn't change the other problems with so much external debt. The dollar's still going to devalue over time--that's inevitable, if only because of the fact that the tax cuts for the rich (which are starting to really kick in now) can only make the external debt problem worse.

agenda fully implemented and our country led by a man of God.

and Bush did go into the Middle East too; his power born and raised there. (OIL?)

or if he and a couple of his ilk were. Got no answer.

blip in the paper that they may be laying off 90,000 worldwide...

Did that happen yesterday?

I wouldn't be surprised if they started closing entire plants.

Talk about the media spin "working its magik". The media fiddles with Schiavo while GM burns!

This GM problem is the thing to be watching right now. If GM goes under to the tune of $300 BILLION debt, this whole nation's going down with them.

:kick::kick::kick:

no longer be the world power he was flogged and run out of town on a YEHAAAAAAAAAAAAAAAA rail. Might need to do some rethinking on this matter.