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Recognizing Change at General Motors

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NEW YORK (MarketWatch) -- A Deutsche Bank analyst downgraded Monday shares of General Motors Corp. to sell from hold, saying the automaker was on the path to bankruptcy before the end of the year unless the U.S. government agrees to a bailout.

“Even if GM succeeds in averting a bankruptcy, we believe that the company's future path is likely to be bankruptcy-like,” analyst Rod Lache said in a research note, essentially calling the company’s shares worthless with a price target of $0, reduced from $4.

Remember, though, the value of stock is not the same as the value of the machines and ideas owned by General Motors. People want autos. Just different autos and/or lower prices than GM offers. A bankruptcy would free those machines and ideas to create stuff people want. And alert masses of workers that job security is an illusion.