So here's some economic speculations I've been paying attention to the various boards I read. Experts have been speculating for a couple months now what would happen to GM and Ford if their bond status was rated as "junk". Many were speculating that GM would file for bankruptcy because it's been bleeding debt for years, and was only making money through GMAC. If GM were to declare bankruptcy, they could separate GM and GMAC into two companies. GM could also in bankruptcy courts unload the unions and all the costs of their retirees, which would be great for their bottom line but bad news for GM retirees, employees and the dozens of companies who have invested stock on GM including many large retirement funds. Experts have also warned that GM stock is a bellweather of the American economy, so if GM filed for bankruptcy it would not be a good sign for the US economy.

Well, it just happened. S&P cut GM's and Ford's bond status to "junk". It will be interesting what GM's next move will be. I say "bankruptcy" and if GM does that, it will be bigger than the Enron bankruptcy and the markets will take one hell of a dive on that day.