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Wednesday, November 16, 2005

Follow Up

I did a little bit of research and found that the State Street Corporation is the largest holder of General Motors at 95,318,342 shares. They boast of being not only "the #1 servicer of U.S. pension plans" but also "investment manager of U.S. pension assets and a leading pension manager globally".

One has to ask themselves how safe their pension is if some or all of it is invested in GM. GM was down over 5% today...ouch!

If and when GM declares bankruptcy, what do the people whose pension fund is so heavily invested in GM do as their pension withers away to nothing?

Truly a sad scenario but one that could have been avoided if these people would have diversified their wealth as they accumulated it by transferring it into solid assets such as precious metals i.e. gold.

The moral of the story is, don't gamble your future well-being on shares of companies in the US whose profits are contingent on a booming US economy simply because the new "global economy" ensures that those days are over.