In December 2005 the news reported on General Motors, using the term ‘bankruptcy’ in many articles. By November 2007 news reports asked about GM’s $39 billion loss. Now, in December 2008 one news report asks “Will Ford be the only automaker to survive?” Every year we send a formal letter to General Motors, as official correspondence from our advocacy center at Household HSBC Watch. Every year we question GM about their relationship with HSBC and the GM Card. It seems GM earned their own problems, and we will not write to them again. GM does not learn, nor do they listen.
Reports are flooding in about interest rate increases on the GM Card, often to 30.99 percent. At a time when people cannot afford it, the change does not say “Happy Holidays”, but instead speaks poorly and reflects poorly on GM. Now in the beggar line for taxpayer dollars, soon to be misappropriated from TARP funds, GM became just another troubled merchant in a long line of merchants either troubled, bankrupt, or otherwise long gone from the American landscape, all of whom have or had a relationship with Household International or HSBC.
I do not need Mr. Madoff as an investment advisor. The key to sound investing is simple. The first step is to look at merchants with HSBC credit card relationships — including General Motors — and simply do not invest in them. It has worked for years as a good strategy, it continues to make money, and guarantees fewer losses. Best Buy is not an exception to the rule, even if you think it might be. Just wait until 2009 for that one.
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