Alan Mulally

• Germany Can Ratify ESM Fund With Conditions, Court Rules (Bloomberg)
• Obama Discusses Iran Nuclear Threat With Netanyahu (Bloomberg)
• Stocks, Euro Gain as Court Allows ESM; Irish Bonds Climb (Bloomberg)
• U.S. cautions Japan, China over escalating islands row (Reuters)
• Draghi alone cannot save the euro (FT)
• 'New York Post' Runs Boldest Anti-Obama Ad Yet (Bloomberg)
• Another urban legend: Fish Oil Pills Don’t Fix Heart Ills in 24-Year Data Review (Bloomberg)
• Troika Says Portugal’s Program is ‘On Track’ (Bloomberg)
• Russia Wants to Steer Clear of 'Gas War' (WSJ)
• U.S. Said Set to Target First Non-Bank Firms for Scrutiny (Bloomberg)
• Wen Says China’s Policy Strength Will Secure Growth Targets (Bloomberg)
• UK faces clash with Brussels on City (FT)

• Eurozone dismisses Greek budget deal (FT)
• Germany Says Greece Missing Debt Targets in Aid Rebuff (Bloomberg)
• Germans concerned over Draghi liquidity offer (FT)
• Azumi Says Japan Won’t Be Shy About Unilateral Intervention (Bloomberg)
• Schaeuble Signals Germany Is Flexible on Revising Terms of Portuguese Aid (Bloomberg) - food euphemism for "next on the bailout wagon"
• Venizelos Tells Greek Lawmakers to Back Budget Cuts or Risk Exiting Euro (Bloomberg)
• Putin May Dissolve Ruling Party After Vote (Bloomberg)
• HK Bubble pops? Hong Kong Sells Tuen Mun Site to Kerry for HK$2.7 Billion, Government Says (Bloomberg)
• Gross Buys Treasuries as Buffett Says Bonds Are ‘Dangerous’ (Bloomberg)

Down 20% from September 2006. Toyota and Honda got brutally slammed. But don't blame post-earthquake inventory shortages. They have been resolved. It's a shift in the market.

The "subprime" vehicle maker is back to its old bag of tricks - of the variety that ultimately resulting in its bankruptcy. After Zero Hedge had been pointing out for months that GM's sales number are in small part a function of its "inventory stuffing" gimmick, which has seen the number of cars held by dealers explode over the past 12 months as seen in the linked chart, leading us to speculate that GM is essentially recreating the AOL "channel stuffing" strategy that worked out oh so well, we now get confirmation that things are in fact far worse than even we had expected. Bloomberg reports that "General Motors Co. is offering buyers interest-free financing on some 2011 models after the company increased discounts and incentives to lead all major automakers’ U.S. sales gains last month." As of yesterday desperate car buyers who can't rub two dimes together, can drive to the local unemployment office in the luxury of their brand new Chevy Imapala, or alternatively pick a just as worthless Chevy Malibu, HHR WAgon, Traverse SUV, as well as a Silverado, Colorado and Avalanche pickups, which are now offered at either 72 or 60 months of interest-free loans. "The 60-month deal also applies to the Buick
Enclave and GMC Acadia SUVs and Sierra pickups." That pretty much covers the entire line up. And that's not all: "GM raised discounts 12 percent from a year earlier to an
estimated $3,732 per vehicle last month, the most among major
automakers and 45 percent more than the average, according to
researcher Autodata Corp." As Jeremy Anwyl, chief executive officer of Santa Monica, California-based Edmunds.com summarized it all too well: "GM’s rhetoric has been saying one thing -- discipline,
discipline, discipline -- and then their actions have been going
completely in another direction." And as the stock, which is now firmly below the IPO prices indicates, the direction is a given: down. It is time for another poll (now that the one about the IPO price floor has been resolved): how long before GM files Chapter 22?