GM in trouble

**uls** · January 1st, 2009 02:55 PM

asan na yun inverse relation nyo ni *tidus nyo na pag oil is high, dollar is low or oil is low, dollar is high.

oil price hasnt been behaving according to fundamentals for most of 2008.

It has been behaving according to dollar strength/weakness

i remember posting charts of USD index and oil price... they showed the inverse relation clearly

it's only Q4 2008 that oil started to behave according to fundamentals

That's coz the speculative funds are now mostly absent from the oil futures market

the speculative funds have liquidated their LONG COMMODITIES/SHORT USD positions in Q3 2008

There was massive liquidation by hedge funds in Q3 due to margin calls and redemptions

so asan na ang inverse relation ng oil/USD ko?

it happened for most of 2008 dude -- about 8-9 months dude

ngayon lang bumalik sa fundamentals ang oil price (supply and demand)

babalik uli ang inverse relation this 2009

i'm not gonna argue with you Oldblue

it's kinda pointless arguing with you coz you offer no backup to your views. no links, no charts, no data, nothing

all you offer is your observations (most of which are your observations in malls) and your interpretations to your observations

**uls** · January 1st, 2009 04:56 PM

They started it, now they have to help everyone

Treasury Opens Door to Aid for Broad Array of Firms, Industries
http://www.bloomberg.com/apps/news?p...d=aZm0zupPvbB8

Jan. 1 (Bloomberg) -- The U.S. Treasury threw the door open to taxpayer financing for a widening array of companies and industries by drafting broad guidelines on aid to the auto industry.

The Treasury’s guidelines, published yesterday, would let officials provide funds to any company they deem important to making or financing cars. That leaves room for the government to provide money from the Troubled Asset Relief Program beyond loans already committed to General Motors Corp., GMAC LLC and Chrysler LLC.

“There are going to be other industries that are going to have just as good a case,” as the auto companies, former St. Louis Federal Reserve Bank President William Poole said in an interview on Bloomberg Television. “We don’t know what those other industries are going to be. Where does this process stop?”

Shares of auto suppliers including American Axle & Manufacturing Holdings Inc. and Lear Corp. jumped yesterday after Treasury announced the guidelines. The Motor & Equipment Manufacturers Association has been lobbying for the use of federal funds as a backstop in case parts makers can’t collect money the auto manufacturers owe them.

Analysts have speculated that companies such as GM’s bankrupt former parts unit Delphi Corp., might be eligible for assistance. The Treasury guidelines may encourage more guessing on what companies and industries are next, said Vincent Reinhart, resident scholar at the American Enterprise Institute in Washington.

**uls** · January 4th, 2009 04:41 PM

dude, FUNDAMENTALS = SUPPLY AND DEMAND

For most of 2008, oil price behaved according to USD strength and weakness, not fundamentals

it's only the past few months that oil behaved again according to fundamentals

coz the speculative funds left the oil futures market

leaving the buyers who actually take delivery of oil (not those who just buy and sell paper contracts) in the oil market

again, oil price inverse relation with USD is NOT fundamentals

supply and demand is fundamentals

---

speculative funds will go back to commodities when the market's appetite for risk returns in 2009

i'm not saying oil will go back up to $150

I'm saying oil price will go higher this 2009

$50, $60, maybe even higher

---

money right now is either in cash or in treasuries

money will go back to stocks and commodities this year

**uls** · January 6th, 2009 10:15 AM

U.S. December Auto Sales Dive 36%, Drag Industry to 16-Year Low
http://www.bloomberg.com/apps/news?p...e2E&refer=home

Jan. 5 (Bloomberg) -- U.S. auto sales plunged 36 percent in December, dragging the industry’s annual volume to a 16-year low as the recession ravaged demand. General Motors Corp. sold the fewest vehicles in its home market since 1959.

Toyota Motor Corp. and Honda Motor Co. posted their first drop in full-year U.S. sales since the mid-1990s after December declines of at least 35 percent. Chrysler LLC’s 53 percent dive last month paced major automakers, while Ford Motor Co. slumped 32 percent and GM and Nissan Motor Co. fell 31 percent.

The federal rescue of GM and Chrysler on Dec. 19 couldn’t overcome buyer pessimism and tight credit in the world’s biggest auto market. GM’s 2008 U.S. total of 2.95 million light vehicles was its smallest in 49 years, and Ford’s tally sagged to a 47- year low, according to trade publication Automotive News.

“It’s one of the worst years ever, and this year will be worse,” said Stephanie Brinley, an analyst at consulting firm AutoPacific Inc. in Southfield, Michigan. “It’s not a gas problem. It’s not a credit problem. It’s a consumer confidence problem, and it’s worldwide.”

GM, which probably lost its global sales crown in 2008 to Toyota, retained the top spot among automakers in the U.S., followed by Toyota, Ford, Chrysler, Honda and Nissan.

The December results for GM beat the average estimate of a 41 percent drop among six analysts surveyed by Bloomberg News. Tempering the decline was a 43 percent surge in deliveries of the Chevrolet Malibu sedan. Sales of GM’s Saab brand, which the Detroit-based automaker says it may sell, fell 57 percent.

**uls** · January 6th, 2009 10:37 AM

Ford, GM, Chrysler end year with big sales drops

SAN FRANCISCO (MarketWatch) -- Ford Motor Co., General Motors Co. and Chrysler LLC on Monday all reported steep drops in December U.S. vehicle sales, closing the books on one of the toughest years the domestic auto industry has ever seen.

**Burai** · January 6th, 2009 12:30 PM

Originally Posted by uls

dude, FUNDAMENTALS = SUPPLY AND DEMAND

how i hate accounting

di na ako makarelate

**AG4** · January 9th, 2009 05:41 AM

Originally Posted by uls

Ford, GM, Chrysler end year with big sales drops

The sales drop is actually Industrywide.

CLEVELAND -- Ford Motor Co.'s sales fell 32 percent in December and General Motors was off 31 percent. Both companies outsold Honda, down 35 percent, and Toyota, down 37 precent. And Ford said sales perked up toward the end of the month, giving the automaker hope that the dismal market for cars might be stabilizing.

The good news did not extend to Chrysler, arguably the weakest of the major automakers. Sales at Detroit's smallest car producer fell 53 percent. The sales carnage was widespread with massive losses for big cars, small cars, big trucks and crossovers.

For the rest of the article, click here: http://blog.cleveland.com/business/2..._in_decem.html