Archive for the ‘General Motors’ tag
A Bankruptcy Opportunity
The latest news reports suggest that General Motors is urgently preparing for eventual bankruptcy. This, after billions of dollars of US taxpayer wealth has been transferred to bailout GM as well as Chrysler - money that is not very likely to ever be repaid. Meanwhile Germany is extending its subsidy to scrap dilapidated vehicles and encourage the purchase of newer technology transportation. While one country transfers funds from taxpayers to a sunset industry, the other distributes it to its consumers. Regardless of which government action is more effective, almost five months ago, Procerity predicted that, “Any aid dispensed to the automakers will only delay the inevitable” That forewarning appears to be coming true.
Procerity’s Prognosis: Expect markets to provide little upside opportunity until a major automaker bankruptcy occurs.