GM says it may run out of operating cash this year

November 7, 2008 by · Leave a Comment
Filed under: Stock Market News 

This has major implications, we have been speculating for months about how long GM could bleed money before it became a terminal problem.  With this bailout, this will set the stage for more companies that keep many people employed to line up for bailout assistance as well.  If we do decide to bail the “Big 3” automakers out, I would like to see some serious oversight during the restructuring period so they start making products that work for our current economic environment and will make them profitable again.  

This will be inflationary via the huge expansion of our monetary base and that is being counter-acted by the huge reduction in credit in the markets.  My thoughts are that we will see asset prices fall to a level that the current credit levels can support.  At that point I believe we will see inflation as the business confidence builds and we will still have limited resources for purchase that will be bid for with all this newly created money via the Fed.   The reason this should happen is because as commodity prices fall, producers are shutting down production when prices fall below a profitable level, that will create scarcity as the economy rebuilds. .02

News:

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.

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GMAC ie: Capmark Financial Group REO Properties

July 29, 2008 by · Leave a Comment
Filed under: National REO Banks 

This is the Capmark Financial Group and partially owned by General Motors. On March 23rd 2006 a private equity consortium including KKR, Goldman Sachs Capital, and Five Mile Capital purchased $8.8 billion, or 78% of GMAC, GM’s commercial mortgage arm.  The new entity, in which GMAC will own a 21% stake, will be known as Capmark Financial Group.

Their REO database search is very basic.  Interesting, at the time of this writing we did not find in listings in the “West Coast” region.  We did however find residential and commercial properties listed, even one on a golf course.  Most of the listings are of high value that is shown in there 7 figure prices or a “contact broker” message.

The listings have a decent amount of information and with nice photos.  They have even map linked them to find out the area they are located in.

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