Tuesday, September 23, 2008

The Next Bailout?

Maybe GM (or Ford?)

Good article from the Motley Fool on how GM has tapped its line of credit (after saying as recently as June that it did not want to do so) as its access to capital is likely closed:

http://www.fool.com/investing/general/2008/09/22/general-motors-playing-chicken.aspx

Now that the bailout money is free flowing and the election is near, I would not be surprised to see GM speed up its inevitable crisis. In an election year, I would not be surprised to see a bailout for GM as there are key votes in the midwest...

I do not see how this will not help the overall market either as GM has a ton of debt, a lot of employees and is still responsible for a decent bit of US GDP. In addition, GM resonates with the American psyche.

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