Don’t bet against America in the long run.
By Daniel at 21 December, 2008, 8:56 pm
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
As a third world country I won’t.
Instead of a V-shaped recovery, Johnson predicts it will look more like a “bathtub,” with slippery sides that will be impossible for the global economy to climb.
When you look at the depression, it really was just a contraction caused by over consumption. It really was just a series of deep recessions which had to keep resetting the goal line - ie prices.
In 1935 they where burning crops because they had to much supply and the price kept going down. Kind of like GM, Ford and Chrysler now.
Consumers can’t afford those new vehicles, and I for one have bought my last new vehicle EVER. I paid $35,000 for it in 2000, have just over 100,000 miles on it and it is worth MAYBE $4,000. So it cost me $31,000 down the drain in 8 years or over $4,000 each year, not counting tags, insurance, upkeep and fuel.
I’ll gladly buy a new 2009 fully loaded expedition.
And I’ll pay CASH for it
Offer - $7,500
Don’t want it? I can offer less tomorrow
and BTW the American taxpayer just bought it.
Better make a HUGE PARKING LOT FOR ALL THOSE VEHICLES
or you can just recycle them like they did in 1935.
Until DEMAND meets supply, prices and capacity needs to be reduced.
50-70% reduction in capacity for cars/trucks
Henry Ford KNEW that unless he paid wages to employees whereby they could AFFORD his product that he was wasting his time.
So other than Food, clothing to a certain degree, utilities - consumption is GOING TO CONTRACT by 40% or more over the next several years.
and just like the depression, every time we turn the corner and start getting back on our feet, expect another recession to appear.
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
No comments yet.