How could one explain that the breakdown in the car markets is as severe as it
is? Hypothesis (a) cars behave like luxury goods? Hypothesis (b) banks and car
dealers are more reluctant to give credit for car purchases? Hypothesis (c) the
high gasoline prices of 2008 scared motorists? Hypothesis (d) consumers are
postponing the purchase of a new car, adopting a wait-and-see attitude in
response to the climate of financial uncertainty and are a bit more willing to
drive an old clunker? Hypothesis (e) car manufacturers inflate their problems
in order to get a maximum of public cash? Other?
Gernot
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