GM - the third largest US bankruptcy in US history

[RTFX-Trading]

Today, the bankruptcy of General Motors (GM) marks the largest bankruptcy proceedings in the U.S. industrial sector, the third largest in all areas. GM is the eighth U.S. listed company with assets over $ 10Mrds to initiate bankruptcy proceedings since the beginning of 2009, the 45th in history.
The 10 largest bankruptcies in the United States since 1980, assets in bankruptcy in $ billions:
1. Lehman Brothers Holdings Inc (2008) 691
2. WorldCom Inc. (2002) 104
3. General Motors Corp. (2009) 91
4. Enron Corp. (2001) 65
5. Conseco Inc (2002) 61
6. Chrysler LLC (2009) 39
7. Thornburg Mortgara Inc (2009) 37
8. Pacific Gas and Electric Co (2001) 36
9. Texaco Inc (1987) 35
10. Financial Corp of America (1988) 34

[Cozy]

You are right man! So GM did it, they went bankrupt and left the US taxpayers with a 60% stake in a car company. If you consider the money they put into it before ? ergo 20 Billion Dollars, they actually own more than 70%, but no matter, the deed was done and the affect on the mood and currency of the US is set. The dollar fell hard yesterday to new long time lows against a bunch of currencies ? and in my opinion the pressure will be on it for some time.

You see while the street revels in the stock market gains from the past three months, up over 30%, many attribute that success to the light at the end of the tunnel. There is no real recovery yet, just glimpses of hope that there will be one soon and as an established investor would know, that is all the market needs.

The markets tend to exaggerate their movements, when things might be bleak they panic and sell and when the situation appears to have an end ? even though it is not close ? they buy. But the forex Market is different; Forex markets cannot hide behind estimates and soft numbers, the market deals with reality mixed in with a little bit of fear. The truth about the US is that they are spending money like crazy, money their president admitted they don?t have, money that the entire world does not own ? and as a result the interest rates on their debt instruments are raising. Inflation will hit the US ? and most probably England for the same reason. How bad it gets depends upon how both governments handle crises like the GM bankruptcy in the future.