GM and Citigroup: Two Stocks That Tell The Tale
It’s funny how a story can be told in just a few pictures. In this case, two stock charts can sum up the recession. GM actually questioned it’s own ability to survive today, leaving Chevy owners like Green Bay Packer fans after Brett Favre was traded. It was a great run, but you knew an era was over.
GM is a stock that was trading above 40 dollars just less than two years ago and is now going for about two bucks, a sharper drop than the value in a used Chevy Uplander. Without another multi-billion dollar bailout, it’s likely that bankruptcy will follow soon.
Flash Player 9 or higher is required to view the chart Click here to download Flash Player nowThe auto industry has been the backbone of American manufacturing, but banking makes the wheels turn (no pun intended). So when a giant like Citigroup stumbles, it creates fears of a new Great Depression.
Citigoup’s stock chard has a dropoff that water slides at Disney World envy. Imagine buying a big screen TV for about 5 grand a couple years back and realizing it’s worth about 100 bucks now. That’s what’s happened now that “C” is below a buck.
What’s next? Both companies are trying to cling to government help to stay afloat and hope for better times. The auto industry is undergoing a sea change with alternative fuels and rising gas costs and may never be the same, and unless (in my opinion) banking laws are changed, companies like Citigroup might continue to face hard times.
[...] Street Pounded. CNNMoney is dead-on about this. I covered the losses of two stocks, GM and Citigroup and how they tell the sad story of this [...]
Thank you for drawing this comparison. I was not aware that the GM stock prices had not recovered any more than this.