Today, the external auditors for General Motors expressed their concerns over the viability of one of the three US car-makers:
“Auditors for General Motors today said there is “substantial doubt” that the struggling automaker will remain financially viable and able to continue operating, raising doubts about whether the company will have to declare bankruptcy or can continue to qualify for Treasury Department loans.”
In layman’s terms, this means that, all other things being equal, GM being in business in the near future (i.e. the next twelve months) is a questionable proposition, despite the billions the government has poured into the company.
A rational investor knows when to cut his losses… any bets on the government’s next move?