Talk about sticker-shock. A spokesman for the GM bondholders group says the government has committed to provide a total of nearly $60 bln in funding to the near-bankrupt automaker. GM’s enterprise value needs to reach $69 bln before the US gets paid back, the spokesman says.
Obama is expected to outline the government’s commitments on Monday when GM formally files for bankruptcy.
The dollar is consolidating its losses with debt and deficits largely responsible for the greenback’s weakness. It will remain weak until the government signals that it is serious about restraining spending once the recession is over. There have been no signs of that to date.
