Just like it is scripted, the Cash for Clunkers fraud is about to expose itself in the most public of ways. As triumphant announcements hit the wires from around the auto-manufacturing globe, other announcements, like the one from Edmunds citing tanking sales also hit the wires. It’s a a perfect storm of fail, and we’re all in the eye of it.

In typical fashion, companies that should take a sensible approach to rebuilding inventory that was moved by the Cash for Clunkers national fraud campaign will instead ramp up production in factories to the point of having employees working overtime. Amazing.

Here’s a USA Today story with GM’s announcement.

This announcement came literally hours after Edmunds.com released a statement showing an analysis of sales data which it used to conclude that the program is dying a quick death in terms of sales volume. The Edmunds piece claims a 15% drop in sales activity last week alone. Sounds like the perfect time to crank up the factory! Let’s flood the market with stuff no one will buy again!

Here’s the Edmunds analysis.

Just when you thought these companies were in a hole before, they’ll be in the septic tank in a few weeks if the Edmunds analysis is correct.