Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (83712)	8/23/2008 3:49:37 PM
From: petekoby	Read Replies (1) of 116555

This is not a bailout but goverment loans similar to what was done to Chrysler in late 70th. Due to junk raiting and tight money, cost of funds is too expensive. Here is what analyst think GM likely needs to raise $7.3B cash to survive through 2009, Lehman says. GM is also more vulnerable than Ford (F) to a global slowdown, firm says; should US sales stall at 12.5M SAAR in '08 and 13M in '09, and the rest of the world weaken by 10%, the amount GM needs to raise rises to $12.2B, firm says, while F will still be above its minimum cash levels. GM also faces the risk GMAC will have to scale back support of auto lending and leasing. "Therefore, with stronger liquidity and a more focused business strategy, we continue to be more comfortable with the turnaround prospects at Ford," firm says. GM up 0.9% to $10.04; F unchanged at $4.72.

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