Monday, May 17, 2010

GM's Earnings: More Orwell and Less Truth

How real are GM's earnings?  I don't know.  I can't find any information other than brief news summaries announcing an operating profit based on better sales and cost-cutting.  I would really like to find a GAAP-prepared financial statement.  If anyone can come up with one please link it in the comment section.

Personally, given that we know that the Government is looking to unload its 60% stake in GM, I don't believe the numbers released today.  Put faith in them at your own risk - caveat emptor.  We do know that GM is looking to get back into subprime auto loans and that Toyota sales are rebounding.  I would suspect that the numbers released today are about as reliable as any other the Government reports.  In other words the believability factor is zero unless the Government/GM is willing to publish full financials with an independent auditor's report attached.
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Regarding today's Empire State manufacturing index:  it came in much lower than expected BUT the prices paid component reached its highest level in a year...

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