We study the formation of giant dense cloud complexes and of stars within them using SPH numerical simulations of the collision of gas streams (``inflows'') in the WNM at moderately supersonic velocities. The collisions cause compression, cooling, and turbulence generation in the gas, forming a cloud that then becomes self-gravitating and begins to collapse globally. Simultaneously, the turbulent, nonlinear density fluctuations induce fast, local collapse events. The simulations show that (1) The clouds are not in a state of equilibrium. Instead, they undergo secular evolution. During its early stages, the cloud's mass and gravitational energy |Eg| increase steadily, while the turbulent energy Ek reaches a plateau. (2) When |Eg| becomes comparable to Ek, global collapse begins, causing a simultaneous increase in |Eg| and Ek that maintains a near-equipartition condition |Eg| ~ 2Ek. (3) Longer inflow durations delay the onset of global and local collapse by maintaining a higher turbulent velocity dispersion in the cloud over longer times. (4) The star formation rate is large from the beginning, without any period of slow and accelerating star formation. (5) The column densities of the local star-forming clumps closely resemble reported values of the column density required for molecule formation, suggesting that locally molecular gas and star formation occur nearly simultaneously. The MC formation mechanism discussed here naturally explains the apparent ``virialized'' state of MCs and the ubiquity of H I halos around them. Also, within their assumptions, our simulations support the scenario of rapid star formation after MCs are formed, although long (≳15 Myr) accumulation periods do occur during which the clouds build up their gravitational energy, and which are expected to be spent in the atomic phase.