GM says to cut $11B in debt, pension obligations

If the government buys the initial stock offering, does that complete the final transfer of the shell game? The stock offering is expected next month. Expect the market to be jumping with QE2 injections with so many billions and the government's reputation as the buyer of last resort at stake.

General Motors Co. says it will cut its debt and pension obligations by $11 billion.

The announcement comes as GM prepares for an initial public sale of company stock.

GM says it will reduce its obligations by buying $2.1 billion worth of preferred stock from the U.S. government. The automaker says it will buy the preferred shares after the initial public offering, which is expected next month.

Source: news.yahoo.com