General Motors Says No More Money!!!

General Motors (GM) is simply in dire straits!!

• GM Says It May Run Out of Operating Cash This Year
  
  By Jeff Green and Mike Ramsey
  
  Nov. 7 (Bloomberg) -- General Motors Corp., seeking federal aid to avoid collapse, said it may not have enough cash to keep operating this year and will fall ``significantly short'' of the amount needed by the end of June unless the auto market improves or it raises more capital.
  
  The largest U.S. automaker reported a $4.2 billion third- quarter operating loss today and said its available cash fell to $16.2 billion on Sept. 30 from $21 billion at the end of June. Merger talks with Chrysler LLC were suspended.
  
  ``GM is making a pretty direct plea for help,'' said Pete Hastings, a fixed-income analyst at Morgan Keegan Inc. in Memphis, Tennessee. ``The message is, `we've done all the things we can do, and we need help.' And if we don't get help, fill in the blank.'' ... read rest here

And it's no wonder that chatter of bailout has begun!

Will Obama Bail Out GM, Chrysler and Ford?

• Posted by Heidi N. Moore
  
  Will it or won’t it?
  
  It is the question swimming around the Big Three U.S. auto makers. Will the federal government give them a bailout? The auto makers, particularly General Motors, have been begging the government for quick disbursement of the $25 billion of loans and they seek more. GM chief Rick Wagoner has been making the rounds of Congressional and Bush Administration officials to talk about the industry’s need for help; one of his advisers, former Treasury official Roger Altman, has been kicking up some dust as well.
  
  And as GM and Ford Motor continue to post massive losses, the windows keep closing for options, such as the now-called-off GM-Chrysler deal. Today, GM warned it “estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business.” The company would find it prohibitively expensive to borrow, even if it could pay it back. The auto maker also abandoned plans to merge with Chrysler. And Wagoner wasn’t afraid to invoke the precedent of disastrous bankruptcies today on CNBC: “Letting GM go is a terrible idea. Look at the effect of Lehman Brothers.”
  
  Enter President-elect Barack Obama. His first press conference included encouraging signs for the auto makers and their efforts to get government helpHere is what Obama said:
  
  The auto industry is the backbone of American manufacturing and a critical part of our attempt to reduce our dependence on foreign oil. I would like to see the Administration do everything they can to accelerate the retooling assistance that Congress has already enacted. In addition, I have made it a high priority for my transition team to work on additional policy options to help the auto industry adjust, weather the financial crisis, and succeed in producing fuel-efficient cars here in the United States. I have asked my team to explore what we can do under current law and whether additional legislation will be needed for this purpose.
  
  But read between the lines: While it’s certainly nice that Obama called the auto makers “the backbone of American manufacturing,” Wagoner & friends might be in for a rude awakening unless they come around to Obama’s way of thinking on producing more fuel-efficient cars.
  
  After all, the auto makers have long resisted the call to make more fuel-efficient cars. And while the $25 billion of federal low-cost loans were intended to help the auto makers retool to produce smaller, greener vehicles, the auto makers, especially GM, would like to use that government money for other priorities.
  
  So were Obama’s words a prelude to negotiation, or a Hobson’s choice? The auto makers can’t wait ’til inauguration day to find out.

Here is how GM has performed as the stock this last 10 years!

Too big too fall?

Hold for longer period?

That above chart simply says it all!