Only In America

J.J. Jackson* | November 11, 2007

DETROIT (AP) — General Motors Corp. posted a company record $39 billion loss Wednesday for the third quarter, as a charge involving unused tax credits brought an abrupt end to a string of three profitable quarters for the nation’s largest automaker.

The loss was one of the biggest quarterly corporate deficits ever, and GM’s shares dropped about 4 percent in morning trading.
GM attributed its loss to a $38.6 billion noncash charge largely related to establishing a valuation allowance against accumulated deferred tax credits in the U.S., Canada and Germany, as well as mortgage losses at GM’s former financial arm, GMAC Financial Services.

Accounting rules require that companies expecting to keep losing money cannot keep carrying deferred tax credits indefinitely and must write down their value.

Must be great to keep losing money year after year and still be able to keep on trucking along like nothing is wrong. And not just money, but oodles of money!

What a country!

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