Tuesday, May 10, 2005

Something smells funny . . .

There's a whole lot of bad news floating around. The news of the day is that General Motors bonds have been declared junk. And there's a big recall that, I think, is following a big recall. We also have news that GM's pension/medical benefits are out of line and the company may have to dump the contract in Chapter 11. With all this bad news, you'd think that people would want to bail out of their GM stock.

But somebody is apparently still buying the stock.

Know what I think? I think somebody thinks General Motors is in play. And they might be right.

But who? Not Daimler-Benz; I think they are probably still trying to choke down Chrysler and their appetite is more than satisfied for a long time. Toyota? Why? China, Inc.? Didn't they just buy IBM PCs?

I think we are in for a wild ride.

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