I really cannot see any point why GM stock price still above 3.90 today. The shareholder equity already negative for a long time. If this happen in Malaysia, KLSE will issue a PN4 to this company. If the company still cannot turn the shareholder equity to positive, in 4 quarter, they will be delisted.
From my point of view, no matter what happen, (bailout or not), it's stock price should be < 1. It is a easy mathematics calculation. But people emotion and hopes drive it up. And true to me, I am not dare to short it now also. So let's us see what would happen next.
I think it would be only in US, the bailout being so difficult to be done. If this happen to Proton, Honda, or Hyundai, the Malaysia, Japan, Korean government will not hesitate to save it. I am not sure Congress (Parliment) have a right to deny it, maybe the government just use the money, and without notice anyone. (Just like what recently happen on Malaysia, government inject 5 billion in Valuecap). I not even know what Valuecap is. Did malaysia government ask anyone to apporve this? I am not sure, but probably no.
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