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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (19948)	10/23/2004 1:53:03 PM
From: Tapcon	Read Replies (1) \| Respond to of 78528

and the financing arm looks vulnerable To me this concern is at least as huge as the pension issue you note. I read recently that if it weren't for the financing arm, both GM and F would have shown really big losses. A close acquaintance is a banking VP whose responsibilities include risk assessment. One of his pet peeves is that companies like GE, GM and F are huge players in the loan industry, but are subject to none of the regulatory requirements and supervision of the banking business. My sense is that this credit bubble is likely to implode sooner rather than later. I must admit, it has looked that way to me for a good 15 months or so, but looking at the personal bankruptcy rates at record levels and perusing the index charts, it sure looks worse today than it has in the past year. Check out financialsense.com All to say that I think these big blue chips like GM, GE, F that have large financing operations are extremely vulnerable.