Tuesday, July 15, 2008

GM Suspends Dividend

GM will be "suspending" its dividend temporarily. Look for that to be a long suspension. I called for this in my June 3rd post titled "What do GM and married men have in common?".

"Look for GM's dividend to be non-exisitent within the year. "

Well, it only took a little over a month. The auto industry is bleeding cash like a hemophiliac with a severed artery. In my opinion, the US auto industry is toast. There will have to be massive consolidations and massive layoffs or a federal bailout. The changes are coming fast, but they are too little and too late.

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