Bailout

Market and GM Update

By Anonymous

If General Motors files for bankruptcy ... plans include a quick sale of the automaker's healthy assets to a new company owned by the U.S. government, a source familiar with the situation said Tuesday.

...the plan also called for the government to forgive the bulk of $15.4 billion worth of emergency loans that the U.S. has already provided to GM.

The first graph is from Doug Short of dshort.com (financial planner): "Four Bad Bears".

This is still the 2nd worst S&P 500 / DOW bear market in the U.S. in 100 years.

Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.

The second graph shows the S&P 500 since 1990.

The dashed line is the closing price today.

The market is only off 42% from the peak.

Full post as published by Calculated Risk on May 19, 2009 (boomark / email).