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  1. #1 GM posts massive loss, auditor may question viability 
    Senior Member tacitus's Avatar
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    By Kevin Krolicki and David Bailey Kevin Krolicki And David Bailey 39 mins ago
    DETROIT (Reuters) – General Motors Corp posted a nearly $31 billion loss on Thursday for 2008 and said its auditors were likely to cast doubt on its viability as it seeks an expanded federal bailout to stay afloat.
    GM, which asked for up to $30 billion of U.S. government aid, posted losses in all of its major units during the fourth quarter and it burned through $6.2 billion of cash. Revenue plunged by more than a third.
    The automaker also warned its pension plans for hourly and salaried workers were underfunded by about $12.4 billion as of the end of 2008, raising the risk of an even greater funding gap in the years ahead.
    The release of the grim results came on the same day that GM Chief Executive Rick Wagoner and other senior executives were scheduled to meet with members of the task force headed by U.S. Treasury Secretary Timothy Geithner and White House economic adviser Larry Summers.
    "They are in fact-gathering mode right now, and so we are here in order to respond to their questions," GM Chief Financial Officer Ray Young told reporters.
    "This is not a negotiation session by any means, they are going to continue to gather facts and continue to ask for clarifications in terms of our submissions," he said.
    Shares of GM dropped 8 percent in pre-market trade to $2.35.
    GM said it could receive a "going concern" notice from auditors when it files its annual report for 2008 with U.S. securities regulators by the middle of March.


    The company, which took $6 billion in charges to shut down North American plants as sales tumbled last year, posted a net loss of $30.9 billion for 2008.
    That marks the second-largest loss for the 100-year-old automaker behind only the $38.7 billion loss for 2007. GM has lost $82 billion over the past four years and cut 92,000 jobs over that period.


    GM ended December with $14 billion in cash and including the first $4 billion in loans received from the U.S. Treasury. It received another $9.4 billion in aid in the current quarter.


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    How many more billions of tax dollars are going to be wasted shoring up GM?


    "If every poor man is to come here and start requesting money for all his children, the applicants will never be satisfied and the nation's finances will collapse." Emperor Tiberius: Tacitus:Annals




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  2. #2  
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    For the last couple of years GM has sold billions of dollars worth of bonds to finance their losses. This ponzi scheme should cease and let this dog die because this company will never be profitable unless it goes into banruptcy, kicks the unions out and is relieved of the imbeded employee benefits cost of $2,000 per vehicle. Non union mfg. do not have these costs. Consequently, their is no way that American car makers can compete with these retirement and benefit disadvantages.
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  3. #3  
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    Well, the market closed before it managed to crash down into the six thousands. I've started drinking early.
    "Today, [the American voter] chooses his rulers as he buys bootleg whiskey, never knowing precisely what he is getting, only certain that it is not what it pretends to be." - H.L. Mencken
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  4. #4  
    Power CUer FlaGator's Avatar
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    Quote Originally Posted by linda22003 View Post
    Well, the market closed before it managed to crash down into the six thousands. I've started drinking early.
    If this keeps up, I think I'm looking at spending my retirement years as a greeter at Walmart...:eek:

    I believe in Christianity as I believe that the sun has risen: not only because I see it, but because by it I see everything else.
    C. S. Lewis
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    On Fox Business they calculated that to get to where our holdings were last year, the market has to give us 14% returns per year.... for the next eight years.

    I'm into the second bottle of cabernet, here, and it isn't even dinnertime yet. :o
    "Today, [the American voter] chooses his rulers as he buys bootleg whiskey, never knowing precisely what he is getting, only certain that it is not what it pretends to be." - H.L. Mencken
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  6. #6  
    Senior Member AlmostThere's Avatar
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    Quote Originally Posted by FlaGator View Post
    If this keeps up, I think I'm looking at spending my retirement years as a greeter at Walmart...:eek:
    If this keeps up, I think I'm looking at spending my retirement years not well-off enough so as to shop at Walmart...:eek:
    Better to die on your feet than live on your knees.
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  7. #7  
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    Quote Originally Posted by linda22003 View Post
    Well, the market closed before it managed to crash down into the six thousands. I've started drinking early.

    You mean to tell me that Obama has not started paying your mortgage payments along with sending you that free gas card and pony.:eek:

    The way the stock market is going, it looks like a good bet to short financials and go long on precious metals.
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  8. #8  
    Senior Member AlmostThere's Avatar
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    Going long on a short pier is looking pretty good these days. :(
    Better to die on your feet than live on your knees.
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  9. #9  
    Senior Member tacitus's Avatar
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    Don't despair folks, the messiah will 'fix' everything and we will all live happily in his socialist utopia. Damn I ran out of Jack!
    "If every poor man is to come here and start requesting money for all his children, the applicants will never be satisfied and the nation's finances will collapse." Emperor Tiberius: Tacitus:Annals




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