GM shares fall to lowest level since 1950

[Marc]

GM shares fall to lowest level since 1950

DETROIT (Reuters) - General Motors Corp shares fell as much as 21.6 percent to their lowest level since 1950 on Thursday amid financial market turmoil and the car maker's report of European sales declines through the first nine months of 2008.

GM, whose shares fell as low as $5.42 on the New York Stock Exchange, blamed the credit crisis and inflation for hurting consumer confidence in Europe, where its sales have declined 1.9 percent in 2008 through September.

GM, the largest U.S.-based automaker, posted a $15.5 billion net loss in the second quarter and announced plans in July to cut costs by about $10 billion. The company has been restructuring in North America to meet increasing demand for more fuel-efficient vehicles.

An investment banker who declined to be identified attributed the share decline to elimination of short-selling restrictions on the shares that had put the equity value out of balance with bond and credit-default swaps values.

"It all has to rebalance now," the banker said.

 

[gpainter]

Alan Greenspan can shoulder a % of the blame for GM and other car company issues. It is also like K-Mart when they said that no hick from Ak will ever overtake them. But Toy is also have issues, our local plant is cutting back and the first time i can remember they are offering 0% interest. I believe that Campbell Soup is doing well!

 

[SteelMaiden]

GM shares fall to lowest level since 1950

Alan Greenspan can shoulder a % of the blame for GM and other car company issues. It is also like K-Mart when they said that no hick from Ak will ever overtake them. But Toy is also have issues, our local plant is cutting back and the first time i can remember they are offering 0% interest. I believe that Campbell Soup is doing well!

Which leads me to again wonder, as I often do, does our media coverage of the various bad news items help to feed the fear that continues to make a bad situation worse?

 

[gpainter]

SM, I agree the media coverage can make it worse. But, at least they have something to fill their time with. I think that it is cutting into the election coverage. Remember the dirty laundry song.

 

[SteelMaiden]

Remember the dirty laundry song.

actually, it plays in the back of my mind everytime I see or hear the news.

 

[Marc]

Which leads me to again wonder, as I often do, does our media coverage of the various bad news items help to feed the fear that continues to make a bad situation worse?

I don't buy it. That implies ignorance is bliss. Can you really say you would prefer not to have any knowledge of what is happening until your bank closes its doors, for example? Or if you have stock, that you have no information about it until your broker tells you you're are wiped out?

Give me the bad news so I can make appropriate plans.

 

[gpainter]

The accuracy is of reporting comes into play as well as the continued perpetuation of it. Some of the presidents have changed the data collection that is used track the economy. Where was the 20 hour coverage about 5 years ago when this was starting to come to a head? They all want to help when it is too late for many. I feel sorry for the retired and those who may be retiring in the next few years.

 

[alex_bell]

Media coverage does undoubtedly come into it IMO.

If the media merely reports the facts then I would agree with Marc but media commentators also like to speculate and fan the flames a bit and when this happens it could result in making the situation worse, especially if the commentators are being sensationalist in their reporting.

Robert Peston, a BBC reporter, in particular has been accused of this.

 

[Marc]

Media coverage does undoubtedly come into it IMO.

If the media merely reports the facts then I would agree with Marc but media commentators also like to speculate and fan the flames a bit and when this happens it could result in making the situation worse, especially if the commentators are being sensationalist in their reporting.

Robert Peston, a BBC reporter, in particular has been accused of this.

People who cannot discern bias through, at the very least, reading/viewing multiple sources, are doomed to problems. In today's world people are advised to get second opinions on many things, such as a doctor's diagnosis. The stock market people have spent years hyping the market. Many people bought in.

In the case of the pro stock market hype, for quite a while it was terribly biased. Reality has come home to roost. Should 'good' news also be part of this discussion? What is the effect of reporting good news, whether that news is biased or not? Does reporting good news REALLY make things better?

If bad news makes things worse, and good news makes things better, then all we have to do is let the government take over all the news outlets, and the internet resources, and only allow 'good' news. That way everything will be all better, all this market stuff will cease to be a problem, we can have record crops, employment, and production, etc.

Yes, the media comes into play no matter what the issue.