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General Motors One Step Away from Junk Bond Status - Who Picks Up the Tab?

Reported by Marie Therese - April 21, 2005

In the Market Movers segment of yesterday's Big Story with John Gibson, FOX Senior Business Correspondent Terry Keenan said this about the deplorable financial condition of General Motors: "GM and GMAC have $300 billion in debt. Put that in perspective. That's the entire Defense Department budget and they're very close to being downgraded to junk bond status. If that happens, all bets are off."

My Big Question: Who foots the bill if General Motors goes belly up?

What financial institutions are at risk if GM files for bankruptcy protection?

What happens to the bottom line of large financial conglomerates that currently hold GM paper when the sea of GM red ink begins to flow?

Will the Bush administration flim-flam American taxpayers into bailing out General Motors the way we were hoodwinked into "saving" the savings and loans under the Blessed Reign of St. Ronnie? (For those of you too young to remember, the current President's brother, Neil Bush, was implicated in that scandal.)

What do our financial gurus out there think?

Should I withdraw my money from the bank and bury it in the backyard?

UPDATE - POSTED 4/21/05, 11:41 P.M. EDT:

For more information on the GM situation go to Forbes Magazine and Reuters.

Thanks to Sagra for the links to these articles!

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