gm in real trouble

GM shares fall 30 percent after S&P statement
Thursday October 9, 4:00 pm ET
By Bree Fowler, AP Auto Writer
GM shares fall 30 percent after S&P places ratings on CreditWatch for possible downgrade

NEW YORK (AP) -- General Motors shares have fallen more than 30 percent after Standard & Poor's Ratings Services said it's placing the automaker's credit ratings under review for possible downgrade.

S&P said Thursday that the move reflects the weakening automotive markets across the world and expectations that tight credit markets will make things tough for the near future.

GM shares fell $2.26, or 33 percent, to $4.65, helping drag the Dow Jones industrial average down by more than 600 points. That's the lowest price for GM shares since March 1950.

The ratings under review include GM's "B-" long-term corporate credit rating and its finance arm's "B-" long-term counterparty credit rating.

S&P says it believes GM has enough cash for at least the rest of 2008, but rapidly worsening industry conditions will make things tough in 2009.

looks like Hendrick will have to switch to Toyota

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Permalink Reply by john mcglasson on October 10, 2008 at 7:30am

he's your saviour pal, get used to it. If you don't vote for him it's clearly because you're a redneck racist and you probably kill kittens with your jeep. Bastard.

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Permalink Reply by Bill on October 10, 2008 at 9:13am

Saviour?!! That's a little extreme. You don't have to be a redneck racist and kill kittens to know that Obama is be a horrible president. Not because he is black, but because he has ZERO experenice. Oh, and for the record, McCain is not much better. Let's keep the politics out of this site. This site is for RACING!

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Permalink Reply by Lance on October 10, 2008 at 10:40am

AMEN! I have very strong political beliefs but there is not point in arguing about things on a racing website. No one's mind will change. Keep the politics in check guys.

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Permalink Reply by john mcglasson on October 11, 2008 at 1:34am

then stop bringing up how much trouble GM's in, you can't talk about that without talking about unions and politics. I agree, keep it off this site.

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Permalink Reply by Greg Jones on October 10, 2008 at 7:47am

just for fun you might look at how the economy works, historically, under republican presidents and how it works under democrats.

then you can go back to pretending that the economy is collapsing because really rich people are taking their money out of the market so they don't have to pay tax on long term profits.

oh, buy the way, the bail out bill gave GM 25 billion dollars

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Permalink Reply by Terie (aka vassinvegas) on October 10, 2008 at 9:46am

Anyone remember when the feds bailed out Chrysler years back? It didn't help in the long run because the same people were running the company. Corporate greed got us where we are. My builder went bankrupt 9 months after I bought this house. It's built like crap because they didn't give a shit. That's what's wrong with our economy, no one at the corp level has given a shit about anyone but themselves for years and look where it's gotten us. That's capitalism for you. The rich get richer the rest of us suffer. Just as a little expample. My Dad is a rich retiree in OC. I sent him an email saying that I was concerned for him. he called me" Chicken Little" and said his millions were just fine.(not that I'll ever benefit because I'm sure he'll outlive me) Smart rich people moved their money a long time ago to safer investments and CDs. Oh, and by the way Bellagio is still running 96% occupancy but the casinos who cater to a more middle class crowd are hurtingand Nevada has th highest unemployment rate in the country.

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Permalink Reply by Keith on October 10, 2008 at 10:07am

Daddy's money must have blinded you during the fiasco of the Carter years.

And one more thing... please don't look for my sympathy... "My builder went bankrupt 9 months after I bought this house.". You bought a "NEW" home. Looks like you are suffering quite a bit.

Just wait until your Socialist friends get control. How much of the financial upheaval is simply just the fear that they WILL get control. Looks like your Daddy is one of the fearful... smart man.

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Permalink Reply by IndyTim on October 10, 2008 at 1:26pm

take my word on this......

The smart rich people can't get their money into stocks quick enough today........

CD's safe? Tell that to those who put 400k into an INdyMac CD..........

Banks should stick to checking accounts...we wouldn't be in as much of a mess if they would have just stayed with what they are good at.......checking accounts....

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Permalink Reply by WJM on October 10, 2008 at 1:47pm

Wash and rinse. It's not unusual for the market to rinse shortly after the opening bell. Investors then buy and sell into the upward volume spike after the rinse for a quick profit. The "smart" people will pull out by the end of the day and go all cash and not risk leaving it in the market over the weekend.

If you look at today's Dow chart you'll see the volume is drying up. We're only about 1,000 points away from the market losing half its value in just the past 12 months. The even smarter rich people have pulled from the stock market completely and moved 1/2 into into muni's and the rest cash. There have been some high-profile muni bond debacles, including Orange County in the 1990s. Still, only about one muni bond a year, on average, has gone into default over the past 40 years. Little risked, something gained.

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Permalink Reply by IndyTim on October 10, 2008 at 2:16pm

Your talking about Trading....not investing....

All of my accredited investors are putting heavy money into the market...and we will go home with what we bought today....then in 24 months are so..when we get 400-500% returns we'll sell it..

The "smart" people are going to take advanatge of this free for all sell by the institutions to get liquid. You need to be able to look past next week in order to take advantage of MANY companies who are trading well below where they should.........

The only reason anybody should sell stock right now is if they forsee needing that money in the next 12 months....if you are selling now because the market sucks 1). Your too late 2). you are throwing in the towel with the mindset the market will never come back.

Really doesn't make much sense to me as a Financial person to sell a good company at a 50-60% loss..to put it into a muni yeilding 5%......

Not much of a technician myself....in a market crashes like we are seeing now...charts aren't going to do you much good....they are going to tell you the stock has broke bottom resistance and you should sell...

My Desk will go home long positons today....I haven't had a loosing week in over ten years....next week will be no different....

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Permalink Reply by WJM on October 10, 2008 at 2:42pm

I'm not doubting what your saying or questioning your philosophy or experience. At the end of the day I'm responsible for me. I'm also a firm believer in "buy and hold." I pulled my long positions in June and have pretty much gone all cash. And yes I agree there are many companies selling at bargain-basement prices, but for me I'm just not comfortable going back in just yet.

I'm 51 years old, semi-retired and have handled my own investments for 30 years. I think I've done okay.

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Permalink Reply by IndyTim on October 10, 2008 at 3:03pm

There is alot to be said for being able to sleep at night..and I appreciate your abilty to put yourself in a position to be able to do that....

I wasn't sure if your were in the business or not....but it doesn't surpise me you've done Okay on your own.....feel fortunate. I've been saying for awhile, from a cost standpoint, for people to be able to go online and only pay 7-10 bucks is great...However, the problem with that..is those companies allow everyday people to jump right in and swim with the sharks...the sharks win most of the time...They see most people making really bad decisions day in and day out and never step in to intervene...kind of sad.......