The prediction from December is unfortunately coming true.  It is time for the politicians to open their eyes – GM was losing money in 2004, and essentially bankrupt in 2006.  those were the supposed good years.  The matter of GM is not a credit crisis matter, rather a matter of bad management, that deserves the obvious fate.  As far back as 2006 GM’s liabilities exceeded assets by $6bn.  By 2008 the deficit was $60bn. The company is attempting to use the economic crisis as a smokescreen for their own deficiencies, and failure to re-engineer. GM to Offer Two Choices: Bankruptcy … Continue reading G.M. is attempting to use the economic crisis as a smokescreen

This is yet another staggerring development that leaves only one simple and obvious conclusion. Bank assets must be valued to market value immediately.  The argument that the market cannot withstand the result which would of crouse imply enormous writedowns, probably beyond that which will be the ultimate result, but the argument to wait is no longer valid.  Banks have already been written down close to zero on the stock market in any event. Banks value their loan write downs based on historic data.  These times are an exception.  Time to predict based on locations, and job types – the result … Continue reading Time to accept reality, and value bank assets at their real value