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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (35742)6/5/2009 8:12:03 AM
From: DuckTapeSunroof  Respond to of 71588
 
Re: "GM was bigger than ford in revenue and in market cap, before the whole bailout issue came up."

Yes, indeed!

And apparently (if the bond markets are any judge... and they usually are a very shrewd judge), GM will emerge from reorganization a smaller company but still larger in sales/market cap, etc. then Ford... but with GM's debt overhang slashed by two thirds.

In fact... Ford will be sporting the much higher debt load (overhang burdening it's equity), and may therefore be at some competitive disadvantage in the years to come.