In reality as the article indicated, the auto sales should be subtracted from the consumer spending statistics.

At least use a realistic estimated value that would be of the norm.

This cash for clunkers program was only a temporary fix to boost the auto industry. To some degree it worked, but not exactly to the extent the government wanted it to work. There were many people who bought foreign cars instead of American cars because of the obvious reliability and service statistics reasons.

I used to buy only American made cars. My experience was so terrible with them I never went back! For the last 10 years I have been buying Japanese cars, and had near zero problems. It would be a very difficult sell to get me to go back.

In going back to the reality of our economy there is no possible way that I can see such a small improvement of consumer spending if any at all, to warrant the market rally we’ve been having. Jobs are still being lost, and many people are frightened about their jobs. This is not a good environment to promote consumer spending.

For anyone who is a frequent trader this type of market has been great, and many frequent traders made very good profits over the last number of months. Holding stocks right now is still very risky, and they should be carefully watched to know when to quickly sell off. I can see this market very easy to collapse, and it can go down very quickly.

From what I can see, this market is running on bail outs, and aggressive investments in to the markets. Profits from sales are still down for most businesses, and for many they are still in decline.

There are many stores in the malls and shopping centers that cannot meet their rent, and taxes. The owners are not closing them down, because they would end up having very few stores, and possibly closing down their malls. They would loose the potential customer traffic of “potential” buyers. When and if the consumer spending comes back, it would be very bad to have huge shopping malls with no stores in them.

Our economy is a big mess, and in reality it is still declining! The present markets are actually disconnected from the reality of this economy.

Jerry G.

Related Posts:

• Study: Auto Loans For American-Made Cars More Likely To Default
• Think about it. Historical average gains in housing are 2% per year, 3% tops.
• I am sure that this is simply a “dead cat bounce”!
• The stronger they go up, the harder they can crash back down!
• I gathered the August auto sales for the following 7 car makers: Ford, GM, Chrysler, Toyota, Honda, Nissan and Hyundai

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