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The General Motors "Shock" We Saw Coming

by Nico Isaac
5/27/2009 3:30:00 PM
At exactly 11:59 pm (E.S.T.) on May 26, 2009 General Motors' bondholders rejected an offer to drop an estimated $27 billion in debt claims in exchange for a 10% stake in the company's stock. So, as the clock struck midnight, GM shares turned back into a slumpkin.
As this icon of American manufacturing fails to stave off Chapter 11, many observers are asking: How did GM go from long-time leader and star – to – exemplar of failed business practices and faulty management?
Filed Under: GM, General Motors, chrysler, auto bankruptcy
Category: Economy


How Can Stocks Rally When the News Is So Bad?
Stocks LEAD changes in economy, politics and even culture.

by Vadim Pokhlebkin
5/5/2009 10:15:00 AM

"Why is the market running up like it is with such bad news, massive debt, increased unemployment, increased defaults on mortgages and credit cards, bad debt at the banks, major corporation going into bankruptcy... Where is the top?" -- That's a quote from an email we've recently received at EWI's Message Board. It's a good question -- and the answer may surprise you. 

 
Filed Under: chrysler, Dow, DJIA, ftse, Nikkei, eurofirst, dax, swine flu
Category: Stocks


Watch Bob Prechter's interview on CNBC Wednesday, Nov. 4. Bob discusses the current juncture, Conquer the Crash II and more.
Robert Prechter on CNBC
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> Do you know of any mutual funds that use Elliott wave analysis? 
> Inflationists: Is there a flaw in their reasoning? What is it? 
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> Obama: Can the President's approval ratings LEAD the stock market? 
> Social mood: If news and events don't change it, what does? 
> Silicon Valley and internet startups: How might they fare in this depression? 
> Prechter's new Theorist: What event can start the next crash in the Dow? 
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As the markets enter what Bob Prechter calls "the point of recognition," we notice that mainstream media pundits who get it start to notice us, our analysts and our forecasts. You can browse dozens of recent media articles about EWI in the EWI Press Room.
 
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The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.