GM is in financial trouble. The company is planning to layoff 25,000 U.S. employees. The troubles were evident to investment community for over a year. Hedge Fund managers made a simple bet on GM. Funds bought GM's corporate bonds and hedged risk of default by shorting GM stock. The plan was to hold bonds and Hedge Funds would lock in interest rate spread between coupon on debt and dividend on common stock. This was a simple either or bet. If GM defaulted on bonds, shorted GM stock would cover bond loss and allow for a profit. If Company strengthened its financial position, interest on bonds would cover any losses sustained by short position. As with many D-bombs, it appeared Hedge Funds couldn't lose.

The D bomb exploded when GM debt was downgraded (causing its bonds to go down) and Kirk Kerkorian made a tender offer for 3% of GM's stock, causing GM shares to rise. Hedge funds got shredded in this little D-bomb explosion. A similar thing happened with Ford stock and debt. And, it happens often with no one wiser.

The fact is those betting on Derivatives are betting on future of Civilization. At some turning point in economic situation, whether it be a recession or double-digit inflation, Hedge Funds will lose sufficient bets to create a cascading explosion that will destroy Civilization. The sad fact is most people don't see that D-bomb is in play and will eventually explode.

A bad credit personal loan is usually secured on your property due to increased risk taken by loan lender. You have a higher chance of being accepted for a secured personal loan than an unsecured personal loan. This is because property you put forward for collateral reduces risk loan provider is making, which in turn enables them to loan more money, over longer periods of time and at lower interest rates.

It is important to remember that if you have problems repaying your bad credit personal loan at any time your home could be at risk. By carefully planning your repayments and financial budgeting you are much less likely to run into debt.

With a bad credit personal loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases. Bad credit personal loans secured on property can be repaid over a period of between 5 years and 25 years .

A bad credit personal loan can be used for any purpose. Some of most popular uses are, home improvements, luxury holiday, dream car or boat, debt consolidation and wedding expenses.

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