GM headed to Chapter 11?? Top execs sell all stock.

Expect GM to file chapter 11 bankruptcy in June. When many of your top executives sell all of their stock, the writing is pretty much on the wall! I just can't fathom the implosion of both Chrysler and GM. Is it possible that every ranking executive at these corporations was so out of touch with reality? I can give you a little insight. When I was a GM dealer, I had a district manager who became a high level member of the corporation. Even though he had become a big time exec, he continued to call me from time to time for what he called "REALITY CHECKS". He would always wonder what was happening in the real world, away from Detroit. I remember one call where he related how livid he was at a comment made by then Chairman Roger Smith. When Smith was asked how GM was going counter the announcement of the Dodge Neon, Chrysler's ill-fated attempt at making a quality, low cost small car, he made the following statement. " Our best competition for the Neon is a used Buick." How telling was that mentality? One could guess that the desire to saturate the market with high profit SUV's was the golden egg that GM thought would never cease to be. Oops. Reality Check Time. I never thought that I would ever witness that less than a 50 cent drop in the price of a GM share of stock would represent a drop of over 20% of its value! The sad fact is that it's going to get a whole lot worse before it gets any better. The Federal Government will see to that.