GM reports staggering $15.2 Billion Loss in Second Quarter

[XDCX]

As another indication on how difficult the car business is for U.S. manufacturers, General Motors reported a $15.5 Billion loss for the second quarter.

A large portion of that loss, about $9 Billion, was due to one-time charges related to their former Delphi operations and severance/termination packages for some of their own employees.

Without the one-time charges, GM still reported a loss of over $6 Billion.

Wall Street hammered the stock as concerns about GM's liquidity became a primary concern. GM reports that they have $21 Billion in cash - not a huge number when you're burning through $2 Billion/month.

Here's a link to the news report: http://money.cnn.com/news/newsfeeds/...0_FORTUNE5.htm

[XDCX]

In yet another example of Wall Street's concern about GM's long term viability, GM's long term bonds due in 2033 traded for less than 50 cents on the dollar today. The bond pays a 8.375% interest rate.

That means that you could double your money and get paid 16.75% annually if you think GM's going to be able to repay those bonds in 2033.

It's hard to imagine that GM could go bankrupt, but given today's announcement that they lost $6 Billion in the second quarter I can see why Wall Street is concerned.