Friday, August 1, 2008

Chronicles Of Depression 2.0: #182

GM posts $15.5B 2Q loss, 3rd-worst in its history
DETROIT (AP) -- General Motors Corp. posted a $15.5 billion second-quarter loss Friday, the third-worst quarterly performance in the company's nearly 100-year history.

The loss came as North American sales plummeted and GM faced expenses due to labor unrest and a massive restructuring plan aimed at preserving cash to weather a prolonged U.S. economic downturn.

So far this year, GM has gone through about $1 billion in cash per month, including $3.4 billion in the first quarter.

Young said GM had $21 billion in cash and $5 billion available through credit lines at the end of June for total liquidity of $26 billion, which he called a strong position. GM already has announced plans to generate another $15 billion in liquidity in the next 18 months.

Emphasis added by me.

Why hasn't the entire executive suite at GM been bounced onto the street?

Where's the shareholder uprising?

There is none. Because institutions account for most of the holding. It's a sweet, corrupt circle-jerk.

$1B cash burn per month? Burn baby burn!

Previously here:

Chronicles Of Depression 2.0: #169
Ominous Rumors
The Deserved Fall Of General Motors
Goodbye, Middle Class. And Good Luck!

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