Originally Posted by Americano

Correct, after the '70s gas lines anything and everything that said economy was selling for thousands above sticker and there were year-long waiting lists. The Japanese automakers chose that direction and simply continued improving products they knew would always be in demand. Then came the oil glut in the '80s/90s and US automakers became lazy and decided they'd again tell the public what to drive, producing pieces of crap unequaled in poor quality and inefficiency.



What Detroit missed was Kenny Lay and Enron convincing current administration (I'm sure it took a lot of arm-twisting) to eliminate US oil futures regulation in 2000, allowing any speculator to by oil futures on margin. 16-1 leverage goes a long ways in that industry and with that Detroit's SUV ego ruined them.

For the final shot to the head, a convenient regulation exception granted by current administration in January 2006, the ICE (formerly the International Petroleum Exchange) futures trading of US energy futures is not regulated by the Commodities Futures Trading Commission (CFTC), even though the ICE Futures US oil contracts are traded in ICE affiliates in the US. Detroit's hide was effectively nailed to the wall and they began selling assets to remain going concerns.