Since there are a million new cars piled up at the ports with no where to go, how is giving $15 billion ?
Posted by admin
Sarah Palin asked:
to the auto makers going to help. They can’t sell what has already been made.
OMA
to the auto makers going to help. They can’t sell what has already been made.
OMA
May 26th, 2006 at 11:34 pm
actually, I think they can
May 27th, 2006 at 6:12 pm
In the absence of enough credit and income to qualify for a car loan, these cars will sit unsold for a while yet. Back in 2005, I began to notice that cars were starting to go unsold when the following years came out. There were still perfectly good, brand-new 2005 cars still waiting to be sold when the 2006 models came out. Inventories increased again when the 2007 models came out. There was a surplus of cars, because there was a deficit of sufficient income for Americans to buy them. This is not rocket science. Supply increases when demand falls. Demand falls when incomes fall. When incomes fall, everyone suffers, and the US goes into a recession. When a recession is prolonged through inaction by those in charge, a depression can follow. Hopefully, President-elect Obama will get some smart people on his team to nip this depression in the bud, and get us back on the road to prosperity and income growth.
May 30th, 2006 at 2:42 pm
That’s why it’s being called a bridge loan. It’s a loan to keep the industry operating until credit loosens up and cars start selling again.