Car Makers Unsubstantiated Hope
The cover of today’s WSJ has a statement, “U.S. auto sales hit their highest monthly level in more than a year in August, bolstering hopes that the industry’s recovery will continue.” Hopeful for an auto sales recovery – are you kidding me?!? Can sentences be called an oxymoron? This “logic” makes no sense to me. The cash for clunkers program only increased the probability of a future slump – we have borrowed from future sales and shifted them to the present. Continuing with my drug analogy – without continued injections, we’ll be right back where we were, if not worse. One step forward, two steps back – not the recipe to a sustained recovery.
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