Quote:
Originally Posted by Klay
Well, the majority of what you "predicted" wouldn't have come to frutation had gas prices not soared in such a relatively short amount of time. GM main loss is coming from suv's and trucks tanking. I guess anyone can claim gas prices will go up at some point in the future but you can't seriously think you actually knew how and why GM would be posting such great losses in July of 2008.
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While no one predicted oil going to $140, signs of increasing gas had been seen for a long time as the US economy slowed and the dollar dropped. There were numerous stories about it on the internet, however the main media and gov't never mentioned it until recently (remember Bush was unaware of $4 gas?).
GM, Ford and Chrysler counted on sales of trucks and SUVs to remain profitable. That's putting all of your eggs in one basket. Any slip in that market would spell disaster for the company.
Oil hitting $140 just accelerated the bleeding. Even if oil stayed at $100 to $110, with the slowdown in the economy, people would have eventually traded in their 16MPG truck for a 25MPG car.