So Goes the Nation?

There’s an old saying: “As GM goes, so goes the nation“.

Well, GM is in big trouble. Its sales are down 45% since last year. It has been shut out of the bond market for the fifth month straight. Indeed, GM may go belly up.

The “Baltic Dry Index” is widely believed to be a proxy for the health of the overall economy. The Baltic Dry is down 90% since May.

They said Lehman – like the U.S. itself – was “too big to fail“. Lehman failed.

As GM, the Baltic Dry Index and Lehman go . . . so goes the nation?

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