Tick, Tock, More on the GM Timebomb

We have been tracking GM closely and noted their precarious position in these past posts: GM Derivatives Time Bomb , GM BK Odds , Derivatives Event III , Derivatives Event II , Derivatives Event I , Bond Market Timebomb , Yo, Junk Bond My Ride

Now it seems even Jim Jubak at MSN is on the GM timebomb bandwagon, some excerpts:

"General Motors has launched a time bomb that could push the company into Chapter 11 -- and take down the financial markets with it. Leave it to the guys who are driving General Motors off a cliff to make things worse.

Thanks to the way that Wagoner et al, structured the GMAC deal, they've created the possibility of a real blowup in the derivatives market that insures bond holders against default. If that bomb were to go off, every financial market would be in shrapnel range.

"bond traders are scared enough about the possibility that General Motors itself could wind up in Chapter 11 bankruptcy that they're buying insurance."

That insurance is in the form of credit default swaps or CDO's. Jubak goes on with a very nice discussion of why the sale, isn't a sale; and why the derivatives market could blow up should GM go BK. Worthwhile reading, NOT in this weeks TV Guide.