re GM signs of bottoming.
Apart from healthcare obligations, GM is $60B+ in debt.
Its bonds are junk status so its debt is costing it well over 10%. In all it is facing roughly $10B/yr just paying interest on its debt.
In the good times when ppl were buying GM vehicles and gas prices were lower, GM wasn't making $10B/yr.
So how is it ever going to pay its debt, whatever rosy picture can be painted with the most optimistic of assumptions?
Yes the auto companies are facing tough times due to external factors. But GM management has allowed itself, while times were good, to get twelve figures in debt. That's a disgrace. The excuse of high oil prices will be used to save face in my opinion, and they now have an opportunity to go bankrupt using econmic/oil woes as an excuse to mask the real reason being executive ineptitude. I think this one bottoms at $0 per share.
