The Walking Wounded...

I spotted the chart at right in an article about Hyundai's recent market success – but there's something much more interesting visible in there.

To wit: the Big Three American auto makers have been steadily losing market share to the Asian Big Four for over ten years.  Most businesses that have lost market share for even a couple of years are in big trouble; to lose share for ten years is an extraordinary record of failure. 

And companies that have been failing like that are certain to be in very poor health.  The falling market share translates directly in to less cash on hand, less ability to borrow, lower share prices, etc., etc.  All bad.  The Big Three were in very bad shape before the recession ever started, which of course meant they were in worse condition to weather it.  Ford's little uptick last year is completely explained by the combination of their refusal to take bailout money and the cash-for-clunkers theft of our money.  Ford's current numbers (now that the cash-for-clunkers theft program is finished) are in the toilet.

In any righteous business environment, the Big Three would have been left on their own to flounder, or to weather the recession if they could wangle a way.  If there were to be any government involvement, it should only have been to somehow put them out of their misery.  Instead, our government has stolen a vast amount of our future earnings by borrowing to “bail out” these losers that will almost certainly fail anyway – probably taking even more of our stolen cash with them.

There's a reason why politicians so often make me think of trees, rope, and knot practice...