GM, Ford `On the Verge of Bankruptcy,' Altman Says (Update2)

By Greg Miles and Caroline Salas

July 22 (Bloomberg) -- General Motors Corp. and Ford Motor Co., the two
biggest U.S. automakers, have about a 46 percent chance of default within
five years, according to Edward Altman, a finance professor at New York
University's Stern School of Business.

``Both are in very serious shape and the markets reflect that,'' Altman, the
creator of the Z-score mathematical formula that measures bankruptcy risk,
said in an interview with Bloomberg Television. The model shows that these
companies are ``on the verge of bankruptcy,'' he said.

The Z-scores for GM and Ford give both a bond rating equivalent to a CCC
ranking, though GM is in slightly worse condition than Ford, Altman said. GM
reported a $38.7 billion loss in 2007, the biggest in its 100-year history,
and hasn't posted a profit since 2004. The scores are based on the
companies' finances at the end of the first quarter.

On Jul 23, 1:01 am, "V for Vendicar"
hotmail.com> wrote:

That's reassuring.

I was surprised they were still around.

Bret Cahill

And if there's one thing GM cannot do, it's change a configuration.

Bret Cahill

On Jul 23, 1:52 am, BretCah...@peoplepc.com wrote:

Is GM an extension of socialism?

Yes..

Capitalism appears to be more based upon the foundations of:

"...apply to ourselves the same standards we apply to others" is one
of the central evils of our society--promoting injustices such as war
and social inequalities in a framework of self-deception, which
includes the notion that hypocrisy itself is a necessary or beneficial
part of human behavior and society."

A car for everyone; please!

heh.

peoplepc.com> wrote

And not more than a year ago, RepubliKKKunts in this very newsgroup were
denying that GM, Ford, or Chrystler were failing.

They were RepubliKKKan Liars then, and they are RepubliKKKan liars now.

V for Vendicar wrote: