BRIC Building; Bankruptcies Accelerate; Auto Parts Suppliers Denied Additional Government Funds; GM Sells Saab; Best Buy Misses Expectations; MySpace Cuts 1,000 Workers; Banks See Recession Ending in Late Summer
Auto and mortgage lender GMAC LLC (NYSE: GKM) reported a first-quarter loss of $675 million and now faces further pressure from bank “stress tests” and freefalling sales volumes that may push its former parent General Motors Corp. (NYSE: GM) into bankruptcy.
The residential real estate sector is in shambles and, some economists say, will not recover until the end of 2010, at the earliest. Now it looks like commercial real estate may be the next block to fall in our “Jenga economy.”