Fear of an Impending Car-Price Collapse Grips Auto Industry
Used-vehicle auctions are for now virtually paralyzed, much like the rest of the economy. The grave concern market watchers have is that vehicles already are starting to pile up at places where buyers and sellers make and take bids on cars and trucks -- and that this imbalance will last for months.
People are now getting their stimulus checks. A family of 4 will have an extra $3,400. That can get you a used car right now. Or a gun. Etc. People will be spending on these items soon. Some predict a sharp rise in prices overall, due to this flood of money, as demand, when the supply provided by our shut-down economy is not so hot. So, inflation for a little while. But, since $2 trillion is not enough stimulus to avert disaster, the longer-term effect will be a depression, which we are partly in right now/soon. (An inflationary depression, or stagflation). Soon enough, car, home, luxury, land, investment, etc., should start to fall in price, as cash dries up.
And, as the article states, the danger to our car companies is great. And they are the companies who, in times of war, make the tanks. Spending $2 trillion on stimulus is a necessary thing, and probably insufficient. (It has had Mark Levin exceedingly riled up, though). The danger is not in the initial $2 trillion. The danger is that when we open up the economy too soon, the virus will flood in a gain, resulting in fits and starts - and a need for further trillions. So, before this is over, we will have spend more money that all wars in the Middle East since George Bush the First. And it is clearly obvious that that expenditure, let's say $5-6 trillion, severely damaged our economy, and prompted the recession of 2008, by sapping away investment money, and leaving investors to resort to corrupt, fictitious instruments.
Thank you China, and we wait with baited breath to welcome you with open arms! At least I'll have my car! I can, uh, drive to, uh...
On the other hand, we were overdue for a new recession. The current, artificially-induced depression will take care of that, and we may eventually come out of it with a ten-year period of growth, if China doesn't own us by then. Finally, bad players will have been weeded out, new technologies will be ushered in, oil will be on it's last legs, and combustion-engine vehicles? Who needs them! Now is the time for scavenger investors to come along and revamp the factories for progressive products. Now - soon - is the time to invest in solar, wind, electric vehicles,hemp, sustainability, smart towns, home-commuter businesses, reforesting, NEW infrastructure - hopefully fiber optic cables rather than 5G! Copper pipes and wiring. Alternatives to plastics. Low-carbon-footprint concrete. Carbon sequestering. New sources of protein. Wholistic agriculture. Weather-resistant housing. Manufacturing and jobs in-country. New thinking! NEW POLITICAL PARTIES!
I'll be posting a slew of new alternatives over at eco_altrnatives soon!
I should add that the present economic lock-down is hurting the poor, small businesses and developing countries very badly. People are dying for economic reasons. This is being discussed over at o_c_c_u_p_y. And the illness itself is killing off the poor, minorities, people with additional illnesses, the disabled and the elderly, as you know, far more than it harming the wealthy and healthy. Don't be suckered by Nancy Pelosi laughing that she had to stock up on multiple flavours of ice cream! Or by the preacher who shouts, "I don't wont peeple to DAH! But we cain't shut down the countreh!!!" Or by the officials who told you you don't need masks when everyone is hospitals is wearing one.
If you are confused, angry, distraught, sad, or seeking communication, please join anti_viral. Ironically, it's going viral!