VodkaPundit

Too Late?

Uh-oh:

The S&P ratings agency has put both GM and its GMAC financing arm on its lowest possible rating: “creditwatch,” with negative implications. CNBC reports that “The ratings agency said the move reflected the rapid weakening of most of the world’s auto markets. It added that capital conditions in the sector would remain challenging for the ‘foreseeable future.’” The move follows hard on the heels of tumbling GM’s share price, pushed downards by a weak overall market and the removal of a federal ban on “short selling” the automakers stock.

GM should have filed Chapter 11 two or three years ago, when they still had (maybe) enough cash to finance a turnaround plan.