Tag Archives: GMAC 6.875% bonds of 2011
We’ve still got a few more weeks of seasonal strength ahead of us in the stock market. But it’s becoming clearer by the day that another meaningful “correction” will hit this summer before stocks can mount a fourth-quarter rally that puts 2005 in the black for good.
What’s he trying to tell us? On Tuesday, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A or B) announced it will buy PacifiCorp, an electric utility serving six western states, for $5.1 billion in cash and $4.3 billion of assumed debt and preferred stock.
Over the long pull, I’m not at all sure. The world’s #1 auto maker has lost market share to foreign competitors for 30 years, and the company’s heavy retiree-benefit obligations could eventually sink the ship. Well before that happens, though, I expect GM to undertake a series of “restructuring” (life-saving) efforts.