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

To: patron_anejo_por_favor who wrote (31724)	5/4/2005 1:06:53 PM
From: Ramsey Su	Read Replies (2) \| Respond to of 110194

GM and F are covered by auto analysts, not financial analysts. I have never read any analysts reports which detail the GMAC or F credit portions of the respective companies. It seems to me that both has at least two components, the auto loans and the mortgages. If GM spins off GMAC, are they going to have problem finding lenders for their 0% financing? Assuming GM buys down the interest rate, an unrelated lender may not be as accomodating with underwriting, or requires other terms and conditions. How about the mortgage side? How many lenders have "lost another loan to Ditech"? So there are 70+ million shares short and assuming Kirkorian just started buying this morning, so there is about 100 million shares that need to be transacted before things can return to "normal". The biggest problem I see in shorting GM is how miserable the GM line is right now. I think 3rd graders can draw some prettier cars with their crayons so it may not be too difficult to improve upon that and may be regains some market share.