Another Enron-style accounting rules waiver?
This shouldn’t surprise anybody who’s paying attention.
#1) GM’s IPO prospectus explicitly states that the company’s internal controls are inadequate, and that its financial statements are untrustworthy.
#2) Phony accounting is universally employed by governments and state-owned enterprises.
#3) Inventory builds reduce unit fixed costs and increase profitabily of sales. It has been a standard technique in the auto industry for decades.
#4) Under any just system of bankrupcy law (similar to that which existed before Obama), GM would be considered to be a criminal organization whose assets have been stolen from its bondholders.