If this guy is right, we're in big trouble!

[Up2Late]

"...Maybe this is why Bush is in such a hurry to set up "private accounts" for Social Security, to draw more money into Wall Street to prop up struggling megacorps like GM, and perhaps the entire US financial system as well..."

This is from: Online Journal Editors' Blog - Tuesday, March 22, 2005

Here are a few clips from it, but it has several embedded links, that are worth following. The fill article is at:

If this guy is right, we're in big trouble!

Jason Hommel of the Silver Stock Report says General Motors is nearly insolvent. He predicts the automotive giant will go bankrupt in three months to a year.

In an article he published online at Kitco on March 18, Hommel suggested that if GM goes down, it might pull the whole U.S. financial system down with it; hence the name of the article, "The Death of the Dollar."

Hommel looked up GM's vital financial statistics in Yahoo Finance and found that the company's market capitalization, i.e. the total value of its stock, added up to about $16 billion after the stock fell from $34/share to $28.35/share, and that the carmaker was in debt to the tune of $300 billion. Hommel thinks that GM will default on its bonds because it won't be able to cope with higher interest rates. Losses on debts this large will cause bond investors to lose faith in even larger debtors, such as the US government...

(clip)

...GM is the world's No. 1 automaker. Isn't this the kind of blue chipper Bush and the rest of the neocon privatizer want you to gamb . . . I mean, invest your retirement in? Maybe this is why Bush is in such a hurry to set up "private accounts" for Social Security, to draw more money into Wall Street to prop up struggling megacorps like GM, and perhaps the entire US financial system as well.

(this is one of two bad links in this blog article)
GM hits the skids