Faith No More

Not a trust or even banking topic today.

The bankruptcy of General Motors marks an important chapter in world history.

To many, GM is just another in the growing number of big corporate failures. Huge numbers, but we're numbed already........$2 billion here, $40 billion there, have heard it all before.

To most people in Asia, GM was just another big American company. Most have never owned a GM product. At best, lusted after some icons like Cadillac or Corvette. Far fewer ever have ever dealt in GM stocks in their portfolios. So what's the big deal?

To me, GM will have a bigger social and economic ripple than anything before it. Now, in my lifetime (being a mere lad of 25 mind you!), I have seen some great icons fail. As shocking as it was, names like Barings, Arthur Andersen, Lehman Brothers, Bear Sterns, etc. were not that tangible to the average man and woman on the street, even in downtown Manhattan let alone across the world. Those companies, and those wounded like Fannie Mae, Citigroup, Bank of America, UBS, HSBC, RBS, AIA, Northern Rock, etc., have effected the economy and mood, but it didn't hit the average home so to speak. Just sectors, just regional, just headlines. The world kept turning.

Why is GM different? This isn't just Detroit or Wall Street. This is Main Street, USA. There is a GM dealership in every virtually neighbourhood. Go to any American and 3 out of 10 (guesstimate on my part) will be owning GM cars, working in GM cars and trucks, or are directly working for GM and or one of their supply chain companies. This one will make every American reflect.

GM will be the watershed, the turning point, where the average American finally says: "we're really mailto:&$X*&!@ up". The straw that broke the camel's back. This one hit home. This is humble pie.

Nothing shakes up the world order like angry, embarassed, gung-ho, dumbass Americans. Not that they'll do anything right, but they'll be doing something. Got to pay off all that Chinese debt right?