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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (13235)	5/5/2004 9:49:56 AM
From: ild	Read Replies (1) \| Respond to of 110194

Asia Pacific: The Coming Profit Shock Andy Xie (Hong Kong) morganstanley.com

To: ild who wrote (13235)	5/5/2004 9:54:30 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 110194

Of course most of that GMAC debt figure are those lovely 125% Home Equity loans from Ditech.

To: ild who wrote (13235)	5/5/2004 10:12:29 AM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 110194

GM's liabilities are quite famous. but i don't think that keeps them from hiring auto workers. what keeps them from hiring workers is the unions and the pension obligations they impose on new hires (those with existing pension benefits are "sunk costs"). so hiring is limited to contract minimums. ironically, this has resulted in a situation where a very small number of auto workers support a growing number of retirees--the complete opposite of the demographics at GM when it was known as Generous Motors in the 50s due to its excellent benefit packages at the time.