If all the news on the way up the ninetees boom was good, now, on the way down it's mainly bad. The latest downgrading of GM is another example of negative feedback, as lower stock values drain money from pension funds.
General Motors Corp. stock was downgraded for a second straight day Thursday. UBS Warburg's decision to downgrade the stock from "buy" to "hold" came a day after Banc of America switched GM to "market perform" from "buy."
UBS Warburg said its move was based on concern over GM's pension liability. "The pension fund poses two major risks — mandatory funding requirements and a hit to expected earnings," said the report written by UBS Warburg analysts Saul Rubin and Mark Doehla.
Source: Yahoo News