Let me start by saying that [[GM]] will probably file Chapter 11 bankruptcy - either next week or sometime in the next five weeks.

They clearly prefer not to file. A bankruptcy filing for GM will create a lot of problems, many more than the Chrysler filing. There are moms and pops and pension funds who own the debt. Not just greedy speculators, the Obama term for the Chrysler secured lenders. These lenders might sue and get a court to grant an injunction.

Investors are looking for ways to play the automobile company bailouts, without having to speculate on the General Motors (GM) or Ford (F) stocks. A safer way of speculating on the autos is by buying their convertible preferreds, notes, convertible debentures, and minibonds, all of which should be paid off before the common shareholders are paid off, in the event of bankruptcy.

• General Motors, 4.5 convertible debentures, 2032, (GXM) 25%
• General Motors, 5.25, 2032, convertible debentures B (GBM) 34%
• General Motors, 6.25, 2033, convertible debentures C (GPM) 36%
• General Motors 7.5, 2044, (GMS), 43%
• General Motors 7.375 (HGM) 44%
• General Motors Senior Notes (BGM) 48%
• General Motors 7.25 Notes (RGM) 48%
• General Motors 7.25 (XGM) 45%
• General Motors 7.25 QUIB (GMW) 45%
• GMAC, 7.25 notes, 2033, (GKM) 42%
• Ford Motor Capital Trust II 6.50% Cumulative Convertible Trust Preferred Securities due January 15, 2032 (F-PS) 35%
• CorTS Trust II Ford Notes 8.00% Corporate Backed Trust Security Certificates (KVU) 36%
• Certificate of Trust Ford Debentures Corporate Backed Trust Securities 7.40% (KSK) 34%
• Ford Motor Company 7.5% Notes (F-PA) 30%
• Lehman 8% Corporate Backed Trust Certificate Ford Motor Company Note-Backed Series 2003-6, Class A-1 (XVF) 33%
• Ford Motor Credit Co. LLC 7.6% notes due March 1, 2032 (FCJ) 23%
• Ford Credit Notes is the Ford Motor Credit 7.375% Notes due October 15, 2031 (FCZ) 22%

Above symbols are based on Yahoo's format for stock ticker symbols. Research the details on these securities before investing.

Risk free yield is shrinking, as many investors have been finding out when recently logging into their on-line bank accounts. The interest rate on many “high yield” bank accounts has shrunk to near 4%. Leaders such ING Direct (4.10%), EmigrantDirect (4.65%), and HSBC (HBC) Direct (4.25%) have reduced rates over the past months. While these rates are not dreadful for FDIC insured deposits, the yields are significantly down from the 5% region before the Fed started to drop the short term rates.

The situation at your neighborhood brick & mortar bank is even bleaker, many money market funds are back to yielding below 1%. Heaping further injury on banking customers, most local corner institutions have been busy increasing fees for every imaginable service. This combination has left many investors seeking opportunities for better yield.