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November 13, 2007
GM 3rd Quarter Loss
General Motors reported a third quarter loss of $39 billion dollars. GM attributed the loss to a $38.6 billion non-cash charge largely related to the write-off of accumulated deferred tax credits. The loss is the second largest quarterly corporate deficit in the history of the United States. According to Standard and Poor’s, the largest quarterly deficit belongs to AOL, who wrote down $45.5 billion following its troubled merger with Time Warner in 2002. The reported loss is larger than GM's total market capitilization. Those who admire unions might ask themselves whether any unionized industry in the United States is doing well at the moment. A serious question for management is whether the shareholders would be better off if the company were liquidated and the cash reserves just distributed to shareholders in a liquidation dividend.
November 13, 2007 in Current Affairs | Permalink
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Sounds like a remake of Douglas and Sheen's Wall Street 1987. It is a shame that America has come to this, yet market pressures and the bend toward global issues will force the end result, the only difference will be the amount of devastation is equal to the refusal level to admit a buggy whip supplier is no longer needed in a horseless carriage society.
Posted by: Laser Haas | Nov 13, 2007 2:23:14 PM
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