guion's said this is GMs big problem and in another thread Pacer said they fixed it. How were they able to do that this quickly?

 

Ironic that you ask this today! From today's Detroit Free Press:

http://www.freep.com/money/autonews/gm13_20031213.htm

 

I'm thinking now might be a good time to invest in GM stock

 

Just to add some comments/summary to that article: they sold Hughes for $4 billion; sold GM Defense for $1.1 billion; contributed over $3 billion from operations; and used about $10 billion worth of bonds to add to the fund. Also, the stock market has risen this year and interest rates will probably rise next year, both of which will improve the situation due to the way in which these things are calculated.

However, in my mind, everyone seems to be glossing over the fact that they still have to pay back that $10 billion in bonds (albeit at a very low interest rate). In effect, they just swapped one form of liability for another, but I guess if it makes Wall Street happy, I'm happy .

 

It's shown some impressive gains since March ...especially the last few weeks.