Why did markets defy GM collapse?

Daily PostJune 10, 2009

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Summary


YOU never know what equity markets are thinking, which sometimes creates curious juxtapositions when good news is followed by falling markets or markets rally in the face of apparently bad news.

An example of this occurred on the day General Motors filed for bankruptcy when the US stock market rose by 2.5%.

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Extract


Why did markets defy GM collapse?

This was, on the face of it, either peculiar or an affront, given the hardship that was likely to result for the employees and suppliers of the ailing gia...

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