Things fall apart

Via Drudge and others, Standard & Poor's has downgraded GM to junk (pause for everyone to struggle with what to say). Ford, too. Other rating services have yet to follow.

The standard problem of course is product. If nobody wants what you got, you're in trouble. Or, on the other hand, if the cash is flowing in, all is forgiven.

But the expense side is important, too. At the very least one must have control over the bowels.

Pensions are one problem. It's hard to believe anyone ties pensions to one company. And if you are the beneficiary of a defined benefit pension, all you're holding is an invitation to break a promise. The only interesting question is whether you'll die before the RSVP.

Another big problem is health care costs, which is the same as the pension problem except that it's effectively a voucher for a limited purpose. Look for American business, champions of private enterprise that they are, to offload this to nationalized health care soon.