GM stock is tanking

At last check it was trading at $1.10 a share, the lowest it's been in 70 years. Clusterstock's Joe Weisenthal is posting that several insiders have finally decided to bail, which explains why the stock is down 23 percent this morning. Another explanation: Bondholders are signaling that the current offer to swap debt for a small stake in the made over GM has little chance. From the Detroit Free Press:

As with Chrysler, the showdown between GM's creditors and the Obama administration will determine whether the government steers GM into bankruptcy under a tight deadline. And with Chrysler's secured lenders ending their fight against the Obama auto task force offer last week, the administration holds the stronger hand. Under the offer from GM dictated by the administration, bondholders would convert at least $24 billion of the $27 billion in unsecured debt into a stake of no more than 10% in a new GM. The government would take a majority, while the health care trust for retired UAW workers would get 39%.