GM Downgrade

Fitch Ratings said Monday downgraded General Motors Corp.'s General Motors Corporation issuer default rating to CCC from B- because of the auto maker's diminishing liquidity and lack of access to capital. The outlook is negative. "External sources of capital for GM remain limited, indicating that liquidity drains will accelerate through year-end 2008," Fitch said in a statement.


Tonight President Bush spoke to us about the $700 Billion Bailout. I'm glad I watched because now I fully understand what has happened. For the first time I learned something from him. Basically the viscous cycle of money has come to a screeching halt.


So many people are doing everything on credit and the banks can't loan what they don't have, more money. Many people have purchased homes and abused the power of the mortgage and refinancing system that they have put themselves in a huge debts. They thought that they could sell their property at a larger value than when purchased, but the real estate market became over saturated with people in the same situation. When they could not pay, the banks that loaned the money took the property to sell, but of coarse they could not either because the real estate market is over saturated. So now the banks can't get their money back.



According to, Richard Kennedy of Cushman Wakefield "Global Real Estate Solutions" and a member of the Board of Directors at my job, "No one could have predicted this." Somehow I just don't believe that. Bottom line is that we all know if we don't pay our bills with real money we will be in trouble. This is classic borrow from Peter to pay Paul. It never works. Someone has to pay and that someone is us. No one is coming up with a solution for this poor planning of our financial state, so what now.