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ProShares UltraShort Financials Message Board

  • marcuspratt marcuspratt Apr 27, 2009 12:39 PM Flag

    GM +23%...LMFAO...

    Now, don't get me wrong, I don't think that Uncle Sam will actually make them file for Chapter 11 protection. However, they are talking about turning thier $15B+ 'investment' into equity and forcing the bondholders and creditors to take equity stakes as a swap. The retirees are being asked to take equity also for Billions...

    Jesus, what would be left through dilution even if they don't file?

    Why in the hell would anyone be jumping into this??

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    • Don't forget the bond holders. They have to agree to eat it big (90% of them need to sign off on a new deal). Some of them are not idiots, and have likely hedged the potential for bankruptcy with CDS swaps.

      Put bluntly, one of the key parties that must agree to a haircut in order to keep GM out of bankruptcy likely has protection in place that would pay them substantially more should ch 11 occur. The gov (IMO) has been trying to ease the public around an inevitable bankruptcy, by acting like it is no big deal, and continuing to funnel taxpayer money to GM that will likely never be recovered.

      As for who the heck is buying, I can only think this is the gift of more taxpayer money, offering an opportunity for current shareholders to get *something* out if they're smart enough to sell on last gasp rallies.

    • isn't the real reason you want gm to file is so your company gets bailout money? nothing would piss me off more than my tax dollars going to a crybaby like you.

    • i have no idea...

      To me it sounds like mass dilution.

      I am missing something.

    • You got me... the puts sure seem like a lock for an easy near double... but i thought that in Dec too and lost my ass.

 
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