[MRM]

You underestimate the danger that Ford and GM find themselves in. I recently read an article that measured Ford's debt and compared it to the company's assets and found that it's debts a little bit more than canceled out its value. In other words, if the company was fairly valued the way most stocks are supposed to be, its stock would be worth $0. The only value to the stock right now is the speculative value of the company as an ongoing enterprise. One that is losing billions of dollars per year.

GM is in much the same shape, although not losing quite as much money now. The problem is that the auto industry is very heavy on fixed costs. If you can carry your fixed costs and sell more vehicles than your break even point, every car sold from that point on makes an incredible profit. GM and Ford do not have the products or the market share to hit that magic point of meeting their fixed costs and getting into the sweet spot of profitability.

The danger is that they might have lost critical mass and are no longer able to sustain themselves.