As GM Goes, So Goes the Nation

I know no one cares about the automakers anymore - I mean that only affects people in Michigan and Ohio - who needs em! I mean we got rid of 95% of our steel industry in the 70s and 80s and that's turned out awesome! What's another old fashioned industry. More bars, more restaurants, more hospitals, more empty homes, more government jobs, more Abercrombie's (ANF)! That's what we need for a thriving economy!

The damage below is startling - let me show you a 1 year chart of General Motors (GM) and Ford (F) - they look like they have been issuing subprime loans the past 5 years.





Let me tell you General Motors (GM) has now lost 90% of its value in under a decade.

Let me be the first not to defend management (lack of vision) or the unions (lack of flexibility), but ask you what it means when in the past we said "As GM Goes, So Goes the Nation" but today we see Bed Bath & Beyond (BBBY) has a higher market valuation (by $1 Billion) than General Motors. In our "new age" service economy based on American over consuming and the Federal Reserve printing more dollars to create the appearance of "wealth" - that tells you everything you need to know about the direction of the country.

Interesting times indeed.

EDIT: You know things are bad when even Toyota (TM) is reporting 21% year over year drops in monthly sales. Not to worry though the government reports show no recession and the American consumer is fine - remember that huge 1.8% spike in spending last week (all stolen from your grandchildren via rebate checks?) All fine - nothing to see here, move along - second half recovery starts today.

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