The big Wall Street story of the day is General Motors. Their stock is taking a beating, dropping to their lowest price since 1950. It closed under $5 yesterday.
The executive staff are trying to calm investors by saying they will recover, even releasing a video called The Case for GM.
General Motors Stock Tanking - Video
GM is not the only one feeling the pain. They are in good company on the S&P “Credit Watch” list, along with Ford, who closed just above $2 yesterday. It is unclear whether the S&P downgrading caused the stock decline, or vice versa.
Watch for plant closures, and with them screaming union workers who will - like parasites - syphon off the remaining cash from the struggling companies, possibly causing their ultimate demise. Alternatively, watch for mergers.
The Chinese say “May you live in interesting times.” I, for one, am interested.
October 10th, 2008 at 9:44 am
[...] I hope one day to reach zero. PayPal button is to the right. Alternatively, go buy me some cheap Ford & GM stock. I just wanna see what it’s going to do over the next 12-18 months. Curiosity killed the [...]
October 10th, 2008 at 7:09 pm
At this point, we won’t even have private owned auto makers in this country next year. Thanks W.
October 11th, 2008 at 8:23 am
[...] I just say this yesterday? When times are tough, people stand together, or they fall apart (yes, that was twee, but [...]
October 11th, 2008 at 8:40 am
all general motors needs is a new management team to turn the automaker into the worlds premier high mileage maker of cars. Adopting several new technologies, the green philosophy, superior maintenance programs, and financing of buyers and building a buyers club like aaa and saturn. To create a new family of buyers of highly efficent cars and trucks and they should pioneer a new breed of pick up and suv with light materials great safety and great mileage. They should compete technologies in house with units specializing in hybrids, electric, hydrogen, and hi mileage gasoline. Failure to do so will just continue to bleed capital and they will go out of business.
October 11th, 2008 at 2:44 pm
part of the reason general motors is where it is, is because they dived into making huge gas guzzling suv’s and trucks subsidized by taxbreaks. Its not just the union’s fault. GM has had a management crises for a long time now. If we had a national health care system union workers would cost a lot less and gm would have a lot less worker legacy costs. Failure of our own elected government to act on the high cost of health care has greatly inccreased gm’s legacy costs.