CNN Money
11/07/08
Chris Isidore

General Motors shook an already embattled auto industry Friday as it reported a huge quarterly loss that was much worse than expected and warned it is in danger of running out of cash in the coming months.

The nation’s largest automaker reported that it lost $4.2 billion, or $7.35 a share, excluding special items. That’s up from the loss $1.6 billion or $2.86 a share it reported a year earlier and was far worse than the forecast of analysts surveyed by earnings tracker Thomson Reuters, which had forecast a loss of $3.70 a share.

But the most shocking news came in its statements about its cash position. GM said it had burned through $6.9 billion during the quarter and warned that it "will approach the minimum amount necessary to operate its business" during the current quarter.

In addition, the company said that in the first half of next year its "estimated liquidity will fall significantly short" of what it needs to continue operating. It said the only thing that would save it would be a significant improvement in economic and automotive industry conditions, help from the federal government, better access to capital markets or some combination of those options.

My comment: We already know that the Obama administration and a Democratic Congress will bailout these companies as the Democrats are beholden to organized labor. This is why I do not vote. The only result from these so called elections is where the stolen loot is distributed. When Bush was in there it was big business and the warfare state. Now it will be the lower classes, government, and organized labor. The end result is the same more taxes, debt, and inflation. My next question is what other industries will be bailed out or given money. The fuse has been lit on the dollar crash as the old standbys that previously financed all of this goofy spending will not be buying trillions of dollars in treasury debt. They don’t have the money either. As I have said before GM should be allowed to fail and then competent people with private capital will come in and restructure the company. Instead it will turned into something similar to what the socialist governments in Europe did to Fiat, Renault etc in the 1970’s. They were turned into wards of the state.

John Polomny
The Real Deal