GM Bankruptcy

GM entered chapter 11 today, which was not a surprise for anyone.

While this was unavoidable, it guarantees, in my opinion, the bankruptcy of Ford. My best guess is June 2010. The federal government is now providing financing to see GM through to the other side of chapter 11 and also funneling billions of dollars to GMAC (now Ally Bank) in order to finance more subprime GM and Chrysler cars.

I wonder who can finance more cars, Ford or the federal government? Ford is in terrible financial condition and would probably be bankrupt anyway, but this assures it.

So here is my prediction in writing. One year from today, Ford will complete the U.S. automaker bankruptcy trilogy.