Detroit is drowning in the saliva of drooling bankruptcy lawyers. Both papers in Detroit today had some very scary headlines that included 'GM' and 'bankruptcy' in the same breath — it's one thing for Autoblog readers to predict these things, but to actually see it in print in the two local papers is something else entirely.
After announcing that it would be restating its earnings, the company's stock hit a 13-year low, and some analysts on Wall Street are talking a 40 percent likelihood that GM will file within the next two years. The analysts also say it's likely that GM will be bought by a "corporate raider" like Kirk Kerkorian before it's forced into bankruptcy — at a time where the entire sum of GM's stock is at $13.5 billion, Kerkorian could buy GM outright, sell off GMAC for $10 to $15 million, force GM into bankruptcy and walk away lots, lots richer than he was before. And that's saying a lot. GM spokespeople claim that the analysts throwing around the b-word don't represent the predominant opinion on Wall Street, but that remains to be seen.