Reports: GM filing for bankruptcy Monday morning.
GM appears to be on track to file for Bankruptcy at 8 a.m. tomorrow. It was only a matter of time, most people who understood the gravity of GM’s situation knew it was a dying enterprise from the time it fell out of the sky. Karl Denninger’s blog The Market Ticker has a good breakdown of the ramifications this will bring, specifically the bondholders will be wiped out. Obviously the suppliers who have been struggling with GM for over a year now are not going to be paid on current orders along the supply chain. Who knows what this will bring market wise, hell it could already be baked in. IF that is the case we will probably be flat monday. If it is not the case this thing is going to .30c PPS, traders will rip it apart.. IF they can get their hands on shares, it is on the hard to borrow list. My thought process is currently in a bearish overall cycle and believe this is bad for the markets, because mom and pop are going to sell, they were naive enough to believe this would never happen. Maybe word of the BK got out late friday, causing a massive short position to puked up, possibly because they were banking on a worse scenario in regards to GM. Tomorrow will tell.