Why I am buying Ford and GM...

**jawilljr** · 11-11-2008, 06:26 PM

If you want to speculate on the auto industry bailout, I would buy their corporate bonds instead. You can get GM bonds for about 20 cents on the dollar... yielding about 35%. Ford's bonds are about 40 cents on the dollar, yielding about 20% or so.

That way if they do go into bankruptcy you will probably get some money back. Common stock holders will be screwed.

Jerry

**lacarnut** · 11-11-2008, 06:31 PM

GM down 13% today at $2.92 per share.

**M21** · 11-11-2008, 08:29 PM

Originally Posted by jawilljr

If you want to speculate on the auto industry bailout, I would buy their corporate bonds instead. You can get GM bonds for about 20 cents on the dollar... yielding about 35%. Ford's bonds are about 40 cents on the dollar, yielding about 20% or so.

That way if they do go into bankruptcy you will probably get some money back. Common stock holders will be screwed.

Jerry

Thanks Jerry.

**SaintLouieWoman** · 11-11-2008, 10:02 PM

Originally Posted by jawilljr

If you want to speculate on the auto industry bailout, I would buy their corporate bonds instead. You can get GM bonds for about 20 cents on the dollar... yielding about 35%. Ford's bonds are about 40 cents on the dollar, yielding about 20% or so.

That way if they do go into bankruptcy you will probably get some money back. Common stock holders will be screwed.

Jerry

I've got some preferred stock (symbol F-a) and getting a great yield. Problem is the broker sold them at about $18 a share, now about $7 a share. So the yield hasn't begun to cover my losses. Perhaps I should buy more now, as will getting that greyt yield w/o the larger investment.

**lacarnut** · 11-12-2008, 12:35 AM

Uncle Sam is going to be in for a great surprise after millions of taxpayers take credit for Capital losses of $3k on their Fed. Income Tax return this year and following years.

I think I will stay in all cash for the next 9 to 12 months. Maybe dabble in a natural gas ETF if we have a cold winter.