S&P may downgrade Ford, GM, Chrysler on worsening market
By Wallace Witkowski
Last update: 1:39 p.m. EDT June 20, 2008
SAN FRANCISCO (MarketWatch) -- Standard & Poor's said Friday it may downgrade the ratings of the Big Three automakers following a review of deteriorating U.S. industry conditions. S&P placed its corporate credit ratings of General Motors Corp. and Chrysler on CreditWatch with negative implications.
"We have renewed concerns about all three automakers' future cash outflows in light of the prospects for U.S. sales for the rest of 2008 and into 2009," said Robert Schulz, an S&P credit analyst, in a statement.
“Some economists, when thinking about long memory, are concerned that it undercuts the Efficient Market Hypothesis that prices fully reflect all relevant information; that the random walk is the best metaphor to describe such markets; and that you cannot beat such an unpredictable market. Well, the Efficient Market Hypothesis is no more than that, a hypothesis. Many a grand theory has died under the onslaught of real data.” Benoît B. Mandelbrot