GM will post a $39 billion loss this quarter. Mortgage related losses occurring in its GMAC financial services division play a part. Holy crap, that’s a lot of money. [Reuters]

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  1. charmaniac says:

    wtf

  2. Fuzz says:

    Maybe they should check under the couch cushions. They might find some change there to help out.

  3. artki says:

    It takes racks of ultra-fast computers connected by high-speed networks crunching numbers inspired by the best and the brightest our business schools can put out to lose that much money that fast.

  4. ARP says:

    I agree, its got to be hard work trying to figure out how to lose money that fast. I mean making your decisions by flipping a coin will give you better financial performance than that. And, I’m guessing the senior executives are still getting paid 7+ figures. Man, I really need to become CEO of a company.

  5. ExGC says:

    The real operating loss is just north of one billion. They had a $37 billion asset on their books representing the future tax benefit of all of their past losses (which they could use to offset future profits). What this means is that they reached the point where under the accounting rules, it’s unclear whether they’ll ever have enough profit in the future to use it – and so they have to write it off in one big chunk.

    Not that losing a billion plus is a small accomplishment in its own right.

  6. Eric Lai says:

    There’s a reason why the new Chevy Malibu is being pitched as “the car you can’t ignore” – because if people do, GM is going down. I think it’s as important as the Chrysler K-cars back in the times of Iacocca. Even considering the inclusion of the future tax benefit, their losses this quarter could have bought a couple of Aston Martins (the whole company, not a single car!) and then some.