Monday, November 10, 2008

Bailout gaining steam.

An analyst over at Deutsche bank has set a target price for GM stock of $ 0.00.

General Motors Corp. plummeted to its lowest level in 59 years after a Deutsche Bank AG analyst downgraded the shares, saying they may be worthless in a year.

``Even if GM succeeds in averting a bankruptcy, we believe that the company's future path is likely to be bankruptcy- like,'' Deutsche Bank's Rod Lache wrote today in a note. The New York analyst recommended selling the shares and cut his 12-month price target to zero. He previously advised holding the stock.

So why are we even thinking about bailing out our automobile manufacturers?

The Detroit Three employ more than 200,000 people directly, and sustain nearly 3 million more indirectly, according to the CAR study. Diminished as they are, the Detroit Three still account for about 4% of U.S. gross domestic product...

We advise buying that Chrysler you've always wanted rather sooner than later.


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