GM Smacks Exxon (GM)(XOM)

The management at GM should give up selling cars and trade oil futures. GM’s chief economist Mustafa Mohatarem says oil will drop to $40 a barrel this year. The man could make billions and keep his day job.

GM’s ability to see the future yields an view that oil will be much lower because of non-OPEC production increases and slowing economic growth.

Wall St. has to wonder if the economists at GM get paid extra for forecasts that would favor the car industry. Or, perhaps he came up with the forecast without any help from the teacher.

Douglas A. McIntyre can be reached at [email protected]. He does not own securites in companies that he writes about.