NEWS: GM's woes one more blow to housing bubble
3/21/2005
Bill Fleckenstein, MSN Money
Along with Fannie Mae GM is a significant cog in the financing of the housing ATM. Why does that matter? Because last Wednesday, the yield on GM's debt widened to 454 basis points (4.54 percentage points) over Treasurys. In my opinion, it won't be much longer before that debt is downgraded. GM has been trying to finance autos, homes and second mortgages at record-low interest rates, but it's hard to see how the company can continue to do so.
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Bill Fleckenstein, MSN Money
Along with Fannie Mae GM is a significant cog in the financing of the housing ATM. Why does that matter? Because last Wednesday, the yield on GM's debt widened to 454 basis points (4.54 percentage points) over Treasurys. In my opinion, it won't be much longer before that debt is downgraded. GM has been trying to finance autos, homes and second mortgages at record-low interest rates, but it's hard to see how the company can continue to do so.
MORE
posted by carlhaacke at 11:30 AM
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