Gernot Koehler wrote:
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
The impact of the price spike on SUVs was pretty obvious in the data I
looked at,
some time ago. I'd say the frequency of car buying is a luxury good,
ditto the 3rd
4th etc car in a household. The mass transit upsurge from the price
spike has yet
to subside. Re: car makers, it's only 2 out of 3 that are under water
right now.
Ford is o.k. though the other 2 might drag it down with it.
If the car moguls are inflating their problem to get dough, it has to be
yet another
in a long line of idiotic decisions, since their troubles obviously
would make anyone
hesitate to buy a car whose warranties and parts replacement are in doubt.
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