ANS: Only because they have so very little equity. Their return on assets SUCKS!
<<<<good revenue and earnings growth>>>>
ANS: GM's income and revenue numbers have been artificially inflated to get the stock price up. GM recent earnings and revenues have included items like:
*Sale of company assets *Channel stuffing (sending dealers more cars than they know what to do with) *Sales of vehicles to Govt, which is trying to get GM's price up *Sales stimulated by massive incentive spending
<<<<more cash than debt>>>> ANS: That started out as $50B in cash. Take a look at GM's cash today and you can see how much they've already burned through.
Unions and Little Timmy Geithner control the stock and the company...that is reason enough in itself! Govt will be forced to sell some of their position here at A HUGE LOSS to free up cash due to debt ceiling issue! Same thing for aig....the cray govt bailing out these toxic firms being kept alive via govt bailout money will go down in the history books as one of the major reasons this country will be going broke in less than 3 years!