"Cash burn rate" was a phrase we heard often during the Internet’s heyday as startups burned their way through angel investors’ cash, typically with little to show for their efforts in the end except some great office furniture and a foosball table. But in news reports this week, the phrase is being tossed about with regard to General Motors, and the rate apparently is so rapid that the company is in peril of bankruptcy – again – after a government cash injection saved it last year.
If GM were one of my customers, likely I’d be in the "too big to fail" boat. Certainly its bankruptcy would send massive tremors through an already shocked market. With its stock trading at $2.55/share today, its market value is just $1 billion, according to Forbes.com. Maybe it’s not then a question of whether it is too big to fail but rather whether it is too cheap to fail; at this price, it likely is getting its tires figuratively kicked by potential suitors. —[email protected]