Thursday, October 9, 2008

why mccain's insider trading buddies warned him to dump his michigan stock early

From Bloomberg:
GM fell $2.15, or 31 percent, to $4.76 in New York Stock Exchange composite trading at 4:15 p.m. That was the lowest close since March 30, 1950, according to Global Financial Data in Los Angeles. Ford slid 58 cents, or 22 percent, to $2.08, the lowest since Oct. 25, 1982, according to Bloomberg data.

Potential `Collapse'—`Buyers are both voluntarily and involuntarily exiting the U.S. new-vehicle market,' Jeff Schuster, executive director of automotive forecasting for Westlake Village, California-based J.D. Power, said in a statement. `The global market in 2009 may experience an outright collapse.'

Shares of GM and Ford were on the list for the U.S. Securities and Exchange Commission's three-week ban on short selling, which ended last night. In a short sale, traders borrow shares, sell them and hope to make a profit by buying back the stock at a lower price and returning it.

GM's 8.375 percent note due July 2033 fell 3.5 cents to 24.5 cents on the dollar, yielding 34 percent. Ford's 7.45 percent note due July 2031 declined 0.4 cent to 34 cents on the dollar, yielding 22 percent...

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