GM's Selling GMAC Bad News For Stockholders (GM)

If you are holding shares in GM, I would strongly recommend selling on today’s news. If you haven’t heard yet, GM sold off their GMAC arm for $9 Billion, less than originally rumored.

I would have to think most of this money will be used to buy out Delphi contracts, a move that was announced yesterday. Without GMAC, Genral Motors is a much weaker company today than they were yesterday, and just yesterday they were a company who has lost billions and billions of dollars in the past year. Bankruptcy may be warded off for a little while with the proceeds of their GMAC sale, but I believe it is inevitable now.