Dave Gonigam

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Goldman props up GM for Plunge Protection Team?

Let's just say for argument's sake you're an analyst at a major investment bank.  You're looking at a company with the following characteristics:

  • An "as stated" net worth of negative $5.4 billion
  • Working capital of negative $3.7 billion
  • Total liabilities of $190.4 billion
  • A 2006 loss of $2 billion

Would you rate this company a "buy?"  You would if you work for Goldman Sachs and the company is General Motors.  You'd be doing your duty on behalf of the Plunge Protection Team, feverishly propping up the Dow.  So says Eric Englund in this commentary.  Check it out.

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