Uh oh: Car sales may have crashed in August
posted at 2:05 pm on August 31, 2010 by Ed Morrissey
Until now, one of the few bright spots in the economy has been car sales (and not coincidentally, manufacturing). Until now, auto sales have provided the Obama administration with a partial fig leaf on the utter failure of their policies to restore consumer confidence, create jobs, and extricate the US from the mortgage markets and the failures of Fannie and Freddie. Recently, Barack Obama used Ford as the backdrop of a speech to declare that the government intervention at GM and Chrysler produced a rescue of the domestic auto industry and pointed to restored sales as proof.
Unfortunately, according to Bloomberg’s forecasters, he spoke too soon:
U.S. auto sales in August probably were the slowest for the month in 28 years as model-year closeout deals failed to entice consumers concerned the economy is worsening and they may lose their jobs.
Industrywide deliveries, to be released tomorrow, may have reached an annualized rate of 11.6 million vehicles this month, the average of eight analysts’ estimates compiled by Bloomberg. That would be the slowest August since 1982, according to researcher Ward’s AutoInfoBank. The rate would be 18 percent below last year’s 14.2 million pace, when the U.S. government’s “cash for clunkers” incentive program boosted sales. …
While automakers increased discounts by 1 percent from July to an average of $2,864 per vehicle, sales to individuals probably fell 7 percent from last month, according to Santa Monica, California-based TrueCar.
Consumers are avoiding showrooms as fear of a double-dip recession grows following the 27 percent plunge in existing home sales in July, said Mike Wall, an analyst for IHS Automotive. The U.S. unemployment rate in July held at 9.5 percent, near a 26-year high of 10.1 percent. The Conference Board reported today that consumer sentiment rose to 53.5 this month from a five-month low of 51 in July. Fewer Americans said jobs were plentiful in August.
It’s worth noting that the auto companies have been maintaining sales through heavy discounting. That, and low-priced financing, has wrung most of the demand out of the market. The problem for auto retailers is the same one in the housing markets — not enough customers. High unemployment and the decline of economic indicators means people are unwilling to make large purchases until they see more security and clarity in the economic future.
Interestingly, Ford will come out ahead in this crunch by only dropping 5.2%, according to analysts’ expectations, in part by maintaining realistic inventories. That means fewer cars coming off the line, though, in the months ahead if the economy doesn’t start reviving soon. Chrysler will see an increase of 3% from last year, but only because the baseline for that comparison was almost non-existent. Analysts expect GM to announce a 19% decline in sales for this month when the reports come out tomorrow.
That’s not as bad as the Japanese auto makers in the US, though. Each of the three main manufacturers are expected to announce sales declines of over 20%, the lowest being 24% by Nissan. The market is collapsing on all brands, apparently.
Blowback
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B-b-b-but… O said he not only saved the car industry but had generated new supply and demand economic models that would provably make a more sustainable future!
Y’know… just like all of his decision making processes these days.
Skywise on August 31, 2010 at 2:08 PM
So I guess that means we won’t be getting back the money we gave the unions in the bailout?
txmomof6 on August 31, 2010 at 2:10 PM
You know, the numbers probably wouldn’t have been so bad if GM and Chrysler had been allowed to go under like they should have.
Count to 10 on August 31, 2010 at 2:10 PM
I’ll be in the market for a new car….in a couple years(maybe longer). And it ain’t gonna be a GM or Chrysler model.
Doughboy on August 31, 2010 at 2:10 PM
Clearly, wingnuts, a second stimulus will solve this. /sarc
Robert_Paulson on August 31, 2010 at 2:12 PM
I guess we need to be reeducated when it comes to buying an automobile.
NotCoach on August 31, 2010 at 2:13 PM
You joke about it, but as long as Obama is President, he won’t allow GM or Chrysler go bankrupt. They’ll be a bottomless pit of taxpayer bailouts until he gets run in 2012.
Doughboy on August 31, 2010 at 2:13 PM
Given the low pricing, rebates, and zero or near-zero financing, this is very bad news. I am tempted to buy a vehicle, but I will pay cash – now is no time to add debt.
Vashta.Nerada on August 31, 2010 at 2:14 PM
Noooooooooooooo! Say it ain’t so!
upinak on August 31, 2010 at 2:15 PM
Clunk.
BobMbx on August 31, 2010 at 2:15 PM
This was totally “unexpected” !!!!!
BruceB on August 31, 2010 at 2:15 PM
New mandate, every American must buy a new GM car every year. That will save the Auto Industry and Obama can hang his hat on it.
Holger on August 31, 2010 at 2:15 PM
Normally I’d make a snarky comment about team Obama being a bunch of idiots, but I think I’d better go buy canned goods instead.
forest on August 31, 2010 at 2:15 PM
I bought my first new car in August 1982. Sure wish I could buy a new car now.
Oh the irony.
ORconservative on August 31, 2010 at 2:16 PM
Ain’t Obamanomics WONDERFUL?
GarandFan on August 31, 2010 at 2:17 PM
We need to investigate those who came up with both the ideas of “sales” and math. – Pelosi
Weight of Glory on August 31, 2010 at 2:17 PM
Make sure you also invest in precious metals. Like lead and brass.
UltimateBob on August 31, 2010 at 2:17 PM
At least in 1982, people could look forward to the upcoming tax reductions in 1983 to spur new demand.
The opposite is true this year, as the Bush tax cuts will sunset in about 4 months, barring Congressional action, and people will cut back even more on discretionary spending as a result.
teke184 on August 31, 2010 at 2:18 PM
“Wow, who knew that if you screwed around with the demand curve that it would have unintended consequences?”
- Seriously hung over college freshman who has missed all three Econ 101 classes so far this fall semester.
turfmann on August 31, 2010 at 2:18 PM
I see another “Cash for Clunkers” in the near future. It worked so well on last years numbers.
Electrongod on August 31, 2010 at 2:18 PM
I am 45 and I have never purchased a new car. There are very few cars that have ever been made that I would ever consider paying over 10,000 for.
Rocks on August 31, 2010 at 2:18 PM
Now you understand the urgency of GM’s IPO.
suburbanite on August 31, 2010 at 2:20 PM
You know, I am starting to believe our elected officials don’t know what they are doing . . .
NoDonkey on August 31, 2010 at 2:20 PM
can I uhhhhhhh…interest you in a high-speed rail service?
/uknowwho
ted c on August 31, 2010 at 2:20 PM
Ruh Roh.
Gee, I bet these numbers will really help GM with their IPO. I’m sure glad we only own 61% of GM, otherwise that could sting a bit.
GnuBreed on August 31, 2010 at 2:21 PM
Only the government can fix this. They must takeover all automobile manufacturing and sales in the US. They must.
As everyone knows, it’s Big Auto that screwing the little guy, just like their brothers in crime Big Beer and Big Milk … they will continue to rape the citizenry while paying the meagerest of wages to workers (why I hear auto workers barely make $80,000 a year! The horror!)
Shut ‘em down, take ‘em over!
Car Justice!!!!!!!
darwin on August 31, 2010 at 2:22 PM
Exactly. That is exactly how the racist and bigoted people like you think. You don’t want to buy a car because Obama is President. You would have bought a car if Bush was President.
sadly America refuses to move beyond Race.
/s
Hey give me Bush.
antisocial on August 31, 2010 at 2:22 PM
Maybe another cash for clunkers will work.
Kissmygrits on August 31, 2010 at 2:23 PM
I never trust early forecasts that they float prior to the actual numbers being released. Last week all we heard was that the economy was gonna grow at .5 %. Then “unexpectedly” it was a whopping 1.6%. The stock market rallied. I guess you can call me skeptical because of all the revisions downward we get after the fact.
sandee on August 31, 2010 at 2:23 PM
My father was an engineer for Chrysler and as a kid that was the only car my parents would drive. These days I drive a Honda Civic, because they’re made in Indiana. The sad thing is we’re paying for these cars (GM, Chrysler) whether we buy them or not. Boy I wish I never quit the Printing Union.
Tommy_G on August 31, 2010 at 2:23 PM
The used car market is exploding and the new car markets are falling off of a cliff. If you have a car that gets decent gas mileage and is in reasonable shape, you can sell it for 20-30% more than it should be worth.
I have also noticed that the kitchen section, especially the food processing aisle have been expanded at Kmart. People are eating out less and making more of their own specialty dishes.
I can buy a meat grinder for like 25 bucks and the local grocery store started stocking sausage casings in the meat aisle. Things are looking up if you like butchering your own food to save a few bucks.
Mord on August 31, 2010 at 2:24 PM
Fix the ones I have, drive them till they drop, just like my grandfather did.
/old school
ted c on August 31, 2010 at 2:24 PM
The automakers can afford to discount cars now,but of course when the economy comes back,all those price incentives will disappear and the consumers will gladly pay top dollar again,driving prices and profits up,instead of insisting upon lower prices.
In the free market(according to some people)price is determined by “what the market will bear”.If people don’t rush off to buy new cars as soon as the jobs market opens up,more people will be able to afford new cars. But of course that ain’t going to happen.
DDT on August 31, 2010 at 2:24 PM
GnuBreed on August 31, 2010 at 2:21 PM
Refresh my memory, does IPO stand for Initial Post-Bankruptcy Offering?
Not too tempting.
I’ll just play the lottery, it’s a safer investment.
NoDonkey on August 31, 2010 at 2:25 PM
I present Hot Rails to Hell to you.
GnuBreed on August 31, 2010 at 2:27 PM
I’m 44, and the same goes with me. I’ve always purchased lease cars that are usually a year old and have around 12,000 miles on them. I usually save around a 1/3 of the cost of buying the car new, and I end up with a vehicle that’s been well maintained. I purchased my last car – a Nissan – 10 years ago, and I’ve put 220,000 miles on it since I’ve owned it. It runs like a top, and I’ll keep it until it dies. And, although I’ve had to invest in some repairs over the last few years, I haven’t had a car payment in about 6 years. Finally, I still get around 30 mpg highway – not bad, considering most new cars today can’t come close to that…
joejm65 on August 31, 2010 at 2:28 PM
The buying public is holding off on their purchases in anticipation of the Chevy Volt. That’s the ticket!
rw on August 31, 2010 at 2:29 PM
Well, I did my part. I bought a new car in August. Get this, I got my vehicle for 0.9% interest for 60 months. I traded in my Honda Civic LX for a Honda Civic EX. The new car has extra gadgets and I am paying $77 less/month than I did on the other car. The total finance charge on the new car is approx. $475 where the finance charge on the original Civic was approx $4000! The old interest rate was 7+%.
I would have bought a Ford, but the Civics are built not far from my house and I have friends who work there.
Oink on August 31, 2010 at 2:29 PM
I’m trying to decipher your post. Is this an admission that you have no clue how markets work?
NotCoach on August 31, 2010 at 2:30 PM
OMG OT.. Bristol Palin on dancing with the liberals… er I mean Stars. Someone shoot me.
upinak on August 31, 2010 at 2:31 PM
It’s even worse than they’re saying – by bailing them out last year and stealing away this year’s sales, he also held the dead wood in the industry around doing the same stupid crap that made them dead wood in the first place. To put this another way, if GM had gone belly up, their sales would have been distributed amongst the others (unevenly based on the quality of the product, marketing, reputation etc etc) on top of the sales that would not have been stolen away from their future by the cash for clunkers. The total effect would be significant strengthening of car manufacturers with the best products and practices and a further winnowing of the worst. AND it would have meant lower debt for the American taxpayer.
Damn, the US govt. sucks.
WashingtonsWake on August 31, 2010 at 2:31 PM
At least GuvMotors won’t be laying anyone off, those union workers will get paid even if they are out fishing on the weekdays.
I did my part a few weeks ago and Ford got the business.
Bishop on August 31, 2010 at 2:33 PM
But, but, GM’s CEO came on television and said that GM had paid back all the loans, right? They ran that ad for weeks. So they’re in good shape, right?
iurockhead on August 31, 2010 at 2:33 PM
Now the problem is all of these people who want to trade down for a used car and can not find them. Crushed via clunkers.
upinak on August 31, 2010 at 2:34 PM
Amazing the damage one bad O ring can do.
Christien on August 31, 2010 at 2:36 PM
I posted this before but it explains the drop in cars sales as well as the crappy economy……
The recovery is a creature of confidence, or its absence. “In normal times, psychology doesn’t matter much. It reflects economic conditions,” says Zandi. “But in abnormal times, it’s the reverse. Psychology determines economic conditions.” What the boom and bust left is a massive case of collective doubt.
and from this story :
Home sales are way down, the stock market is way down, the unemployment report is very disappointing and consumer confidence is sputtering,” Jesse Toprak, vice president of industry trends at TrueCar.com, said in an interview. “People just don’t want to make big-ticket purchases because they’re uncertain about their jobs and the value of their homes.”
hmmmmm HOGWASH!!! economics is not about emotions its about hard cold facts and figures. emotions do not play into the equation. Liberals and RINO’s and sadly some conservatives love to believe this but it is totally wrong.
Economics can be boiled down to the law of supply and demand. the reason we have the recession is lack of demand. Prices are too high in relation to wages. As long as this continues to occur people will save. they will cut back as they see it getting harder to make ends meet or find that they are in the hole at the end of the month. Once prices and wages align again demand comes back which will put pressure on compnaies to increase supply which will put people to work which will increase demand which will put pressure on companies to increase supply etc.
If companies drive up prices instead of increasing supply (like they have been doing over the last year) the recovery will falter as the demand slackens.
this has nothing to do with emotions. Emotions are the RESULT of the economic conditions not the cause. If you have more wage then bills you are happy and will spend. If you have less wage then bills you are fearful and will cut back. Your fear and happiness are not making your economic decisions. It is your underlying economic conditions.
the only way for the economy to recover is to drop prices or increase wages. GM, Ford etc instead of cutting supply last year and laying off workers should have taken the hit to company profits and dropped prices while increasing supply. Which does not mean they should go into the red. Simply means they should make less. A company can not survive with red balance sheets. but they survive with less profit.
when companies attempt to keep price points and profit margins stable they are doing the same thing that governments do when they place price controls on products. Price controls implemented by companies or business do not work. The reason they do not work is in the case of Government the price controls are usally set too low thereby increasing demand to outpace supply. Making the rationing of resources have to occur.
In the case of business the price control will set the price to high destorying demand and set a positive feedback loop requiring companies to restrict supply more and more which will destroy demand further to keep the profit margin stable.
This is why a good economy needs deflation and inflation of prices. It allows the balancing by the free market of supply and demand.
what the CEO’s are doing in this economy is the same as what nixon did. Price control by another name.
Just look at reported company profits this year. Record profits. which might seem good yet the economy is nosediving. sometimes what is good for IBM or GM is not good for the economy as a whole. and those in the GOP that think that companies are the same as the free market need to wise up.
If the US automakers want to increase sales they must descrease prices it is as simple as that. Of course the Automakers will instead reduce supply to keep the artifical profit margin and thus lead to another round of layoffs and smaller demand.
unseen on August 31, 2010 at 2:36 PM
I did my part too and Honda got mine..:)
Dire Straits on August 31, 2010 at 2:36 PM
Break more windows, stat! – Obama
lorien1973 on August 31, 2010 at 2:37 PM
DDT on August 31, 2010 at 2:24 PM
Because, of course, responding to an increase in demand by increasing the amount of cars you build and deliver wouldn’t cost the company an extra *DIME* so they should keep selling those cars at the same low-low prices.
Mord on August 31, 2010 at 2:38 PM
Clearly you haven’t yet gotten behind the wheel of the Chevy Volt…
myrenovations on August 31, 2010 at 2:38 PM
I would go further and avoid anything manufactured by the UAW. The UAW and the other filthy greedy big unions are one of our biggest problems.
slickwillie2001 on August 31, 2010 at 2:41 PM
Isn’t it time that our Prez to personally re-grade his on the job performance?
That would be a classic moment – if the question is sprung on him “unexpectedly.”
Oopsdaisy on August 31, 2010 at 2:42 PM
Damn, the US govt. sucks.
WashingtonsWake on August 31, 2010 at 2:31 PM
not just their sales but their resources also. Thos eunemployed would have been hired by the other automakers to handle the increas ein their demand….
unseen on August 31, 2010 at 2:43 PM
Stupid wingnuts, everyones waitin for the $41,000 VOLT!
Lets see Obama ef’d up the stimulus, the economy, healthcare, the housing markets, NASA, the gulf (with a U), race relations, international relations, oh the border with Mexico and is gonna let the Estate Tax go to 55%.
Can’t wait to buy an Obama Auto! NOT!
dhunter on August 31, 2010 at 2:43 PM
Or else he’d never buy another car, new or used, ever again?
NotCoach on August 31, 2010 at 2:44 PM
Hey, it’s a great time to roll out the 2011 Cavalier, with a battery and a $41,000 price tag.
Right?
MNHawk on August 31, 2010 at 2:44 PM
Relax, alright? Michelle’s old man is a television repairman. He’s got this ultimate set of tools. He can fix it.
Christien on August 31, 2010 at 2:45 PM
Because, of course, responding to an increase in demand by increasing the amount of cars you build and deliver wouldn’t cost the company an extra *DIME* so they should keep selling those cars at the same low-low prices.
Mord on August 31, 2010 at 2:38 PM
everytime you increase price you decrease demand so if you increase price to handle the extra demand too much you destroy that extra demand. yes there are added costs but sometimes increased production causes savings in the supply chain. (see Walmart) in fact look at new tach. the more they make the cheaper the gadget becomes as the costs are wrung out of the system. the more the price falls for an ipod the more ipods are sold as long as price is allowed to fall or rise in the free market supply and demand will even each other out…
It is when companies insist on a set “profit margin” that things start to look like a command control economy.
unseen on August 31, 2010 at 2:47 PM
+1000
WashingtonsWake on August 31, 2010 at 2:48 PM
We’re headed the way of Cuba where the proles, unable to replace their cars, keep driving the same vehicles year after year after year…
Tres Angelas on August 31, 2010 at 2:48 PM
According to Joe, things are on track and we just need to give this “recovery” more time. Can anyone tell me who really believes the BS from the BO administration? Really! There seems to be no end to the parade ‘O talking heads that still stand up with a straight face and defend this admin. I think we are seeing mass Stockholm syndrome, where these guys actually begin to believe what their leaders are saying.
ClanDerson on August 31, 2010 at 2:49 PM
not to harp on this, but it really does amount to this:
a) Americans are woefully ignorant of economics.
b) Americans are ridiculously ignorant of logic.
c) Americans are completely ignorant of ethics.
d) Americans are absolutely ignorant of history.
In combination these varied and sundry ignorances create a sheeped-people incapable of discerning reason for foolishness, divining a reasonable path or understanding the interconnectedness of things.
WashingtonsWake on August 31, 2010 at 2:51 PM
this is not entirely true. psychology does play a roll, as it affects demand.
If a lot of people aren’t spending b/c they are worried about the economy, rather than b/c they don’t have the ready money, then it effects demand. I, for one, could use a new car, but am unwilling to buy one right now b/c I don’t want to take on a new debt until the economy improves.
Also, I think that this recession is going to change the way people spend in general. For the last 20 years, we have been a credit nation – with people spending way above ttheir means on credit cards, etc. This includes buying hosues way above what they could afford.
I think we will not return to such an extent of that for a few years. Which means that the excessive-credit spending that has driven our economy for years is gone. I don’t think things like higher-end car sales are going to come back for a long time. Middle class people driving around in Hummers and other $50k vehicles is likely a thing of the past. Same holds true for a lot of consumer spending.
Monkeytoe on August 31, 2010 at 2:51 PM
I believe it is “righteous set of tools”!
Monkeytoe on August 31, 2010 at 2:53 PM
The drop in the economy really hit used car prices for a while, and while they have rebounded, that is still affect lease residual values, which makes leasing (no money down) very expensive even with low interest rates…
phreshone on August 31, 2010 at 2:53 PM
Ultimate
Christien on August 31, 2010 at 2:58 PM
this is not entirely true. psychology does play a roll, as it affects demand.
Monkeytoe on August 31, 2010 at 2:51 PM
Ok I see your point but let me pose this question. If you had $50,000 in savings would you wait for that new car or go buy it with cash?
credit spending and total house values are a function of being able to meet monthly payments. If you can control 10,000 for $200/month people do it.
the problem is they are no longer able to do that. in short they can’t take on any more debt because their monthly wage will not allow them. the forclosures did not start in earnest until interest rates and as prices started to climb. Screwing with people’s monthly bills. you had to pay more for gas, for food, for credit and thus had less at the end of the month. thus you had to cut back.
People started to lose jobs and they decided to cut back based on those facts. they are attempting to realign their wage with thier spending. Credit spending is a monthly bill. they want to get rid of those monthly bills but also the responsibility for debt…..again based on the facts on the ground. Wages are falling, the prospects of wage increases fall with increased unemployment. home prices are falling (i.e their equity or “savings” are falling they are reducing the exposure of their debt to the decreased in “savings”
etc.
the fear and happiness is a result of the economic conditions not the cause of it.
unseen on August 31, 2010 at 3:03 PM
Obama just needs to roll up his sleeves, analyze the profit and earning ratios, and he will have a solution together in no time.
Joe Caps on August 31, 2010 at 3:05 PM
They should just reorganize so they can officially be part of Fannie and Freddie.
hawksruleva on August 31, 2010 at 3:10 PM
After a brief, dizzying peek at the numbers, Obama remembered that profit and earnings are both BAD! He’s taken steps to eliminate them.
hawksruleva on August 31, 2010 at 3:11 PM
Monkeytoe on August 31, 2010 at 2:51 PM
one final point. you say you do not want to “buy” a car because you do not want to take on more debt. the fact is you can not afford a car if you have to take on debt for it. you might be able to make the monthly bill but are worried about the future to take on that debt. your worry over the future is not stopping you from buying the car. the economic fact that you can not pay for it and will have to take on a debt obligation is stopping you from buying the car.
I know splitting hairs maybe but if people had savings or high wages they would not need debt and their worries/concerns would not impact economic decisions. It is the underlying foundations of wage/savings(demand) vs price vs supply that is the real economic cause.
unseen on August 31, 2010 at 3:12 PM
Wow, and just this last Friday when they were announcing the numbers, they said there was an increase in durable goods, because of demand for cars. Well, there goes that.
Queen0fCups on August 31, 2010 at 3:18 PM
Unsurprisingly since used cars took off recently.
Speakup on August 31, 2010 at 3:22 PM
Well, there goes that.
Queen0fCups on August 31, 2010 at 3:18 PM
the government buys alot of cars and can time their buys to give the max impact to numbers reported….
as long as the gov thinks the economy is based on voters emotions they will continue to fudge numbers, play games and propose programs to make the voter feel better. It does nothing to solve the problem but they will continue to do it…
unseen on August 31, 2010 at 3:22 PM
What people need out of a car is basically, a way to get from point A to point B, reasonably safely and reliably, along with capacity to haul this or that.
That’s it.
You don’t need a $30,000 car to do that.
You don’t need a $20,000 car to do that.
When the economy is in the crapper, even people who have wealth don’t feel as good about flaunting it by buying a luxury car.
And people who are doing OK now, wonder what the future has in store and choose to save the money or spend it on something more necessary than a shiny new car that performs pretty much the same function as an old scratched up car.
Until Americans are optimistic about the future, new car sales will not do well.
Jettisoning the Democrat Congress will help.
NoDonkey on August 31, 2010 at 3:23 PM
the really funny thing is last week a liberal friend of mine said that the car industry thanks to Obama was going to lead us out of the recession…..that if he would not have “saved” the car companies we would be in a depression for decades….that sales were increasing and the unicorns were riding high in the sky again thanks to Obama.
I love it when reality hits liberals upside the head….I just wish that so much human pain and suffering where not required for liberals dreams to fail….
unseen on August 31, 2010 at 3:25 PM
I think the ‘October Surprise’ is going to consist of the Chevy Volt being offered to the public at a vastly reduced price ($39,000?) At that price, these babies are going to ‘fly right off the lot’- just as soon as the public can come to grips with the concept of an electric car that gets an unbelievably shitty 40 miles to the charge. And we wonder why the American auto industry (except for Ford) is permanently in the tank?
alwyr on August 31, 2010 at 3:30 PM
Never again on either one. I own 4 Fords.
saiga on August 31, 2010 at 3:30 PM
I have no desire to own one of those beaters. Imagine trying to work on one of those. It would likely shock the crap out of you if you accidently touched the wrong thing.
One thing about gas burners, they seldom electrocute you.
saiga on August 31, 2010 at 3:34 PM
Undoubtedly people are saving up to buy Obama’s Chevy Volt… Yeah, that’s it!
RJL on August 31, 2010 at 3:36 PM
What about a brake job on a Volt. They use breaking energy to recharge the battery. Changing brake pads will probably cost $800.00 per side.
saiga on August 31, 2010 at 3:36 PM
Hey Ed! Have you warmed up the “unexpected” cannons for tomorrow? After last months downward “revision” to 11.5 million (the original prediction, BTW), the prediction for tomorrow is 11.6 million.
I expect a round of “unexpected”s all around…
karl9000 on August 31, 2010 at 3:40 PM
Wow, Øbama used to have to stand next to you for his kiss of death to reach you. Now, all he has to do is talk about you.
Here’s hoping he doesn’t extol the prosperity of the I/T industry, my job security is shaky enough as it is.
Kafir on August 31, 2010 at 3:42 PM
He wouldn’t have “saved” GM if it weren’t full of his union hack supporters.
And if GM wasn’t full of union hacks, it wouldn’t have required savings.
Unions are the anchor on the ankle of any business unfortunate to be shackled by their goldbricking members.
NoDonkey on August 31, 2010 at 3:52 PM
Remember the cash for clunkers program required the used vehicle being traded in to be destroyed. — That might explain the problem with used cars.
Dasher on August 31, 2010 at 3:55 PM
Well, I can’t say much. We traded in the wife’s 2006 Scion xB (paid off) for a new Honda CR-V. She loves it. So after a month of having two SUVs, I decided to trade in my 2009 Toyota Highlander (also paid off) for a Porsche Boxster (used). Loved my Highlander, but I REALLY love the lapis metallic Porsche. We don’t have any children so we thought it would be nice to have a convertible to tool around town in. Looked at Miatas, Mustangs, Camry Solaras, then Vettes and Z4′s. Ended up with the Boxster. The engine note is sublime.
Kinda sucks going from no car payments to two. But both loans are super-low interest and I’ll have the Porsche paid off within one year, if not sooner.
robblefarian on August 31, 2010 at 3:58 PM
Guess I’ll have to look around for a good used car.
Wait a minute….
mrt721 on August 31, 2010 at 3:58 PM
Unions are the anchor on the ankle of any business unfortunate to be shackled by their goldbricking members.
NoDonkey on August 31, 2010 at 3:52 PM
i agree the unions were/are the problems but its also the failed free trade policies.
As far as unions they have their place. when crony capitalism is the law of the land and companies can buy votes and change workplace laws to fit them unions are needed. happily they are not needed at this time in our history. workers are respected and compensated fairly. The problesm with unions is they won their battles and instead of going away in vicotry they stuck around and become corrupt org interested in power more then the people they represented. and add in the fac tthey were taken over by the marxist sin the 60′s
unseen on August 31, 2010 at 4:01 PM
I’ll bet that there won’t be any economic optimism at least until after the midterms. If the GOP takes the House, Americans may then have hope that Obama will be a one-termer. In the meantime, as long as there’s a prospect of an Obama second time, the economy will continue to flounder.
BuckeyeSam on August 31, 2010 at 4:20 PM
BuckeyeSam on August 31, 2010 at 4:20 PM
I believe if we get a GOP Congress, the economy and the stockmarket will heal quickly.
Especially if they overturn some of this nonsensical legislation our current clown Congress passed.
Just knowing that no more Democrat sewage legislation is inbound, will help quite a bit.
NoDonkey on August 31, 2010 at 4:23 PM
Everyone is saving up their money for those $40,000 Volt electric cars….
;-)
albill on August 31, 2010 at 4:30 PM
I think what we need is more stimulus.
tommer74 on August 31, 2010 at 4:41 PM
So how’s that “recovery summer” thing workin’ out for ya?
MJBrutus on August 31, 2010 at 5:06 PM
Maybe that “D” isn’t for drive, but Don’t buy…
right2bright on August 31, 2010 at 5:18 PM
Unseen:
I do have around that much in savings. I don’t want to use that money right now out of fear that we may have to live on it if me or wifey lose our jobs. I’m not in any immediate danger, but if things get bad enough I want to have a cushion. And that includes keeping our debt down as well as keeping our savings up.
That’s what I mean about psychology have an effect on demand.
Monkeytoe on August 31, 2010 at 5:24 PM
It’s funny how your memory can play you wrong. Ultimate it is.
Monkeytoe on August 31, 2010 at 5:26 PM
And everyone points to Biden as the dunce?
chickasaw42 on August 31, 2010 at 5:51 PM
Great post. This attempt to force people into buying certain cars is asinine.
Party at Monkey’s house. /
Actually Monkey I feel very much the same way.
More of Obama’s genius at work. Sadly the typical Obama voter-the one’s who can least afford new or used vehicles- hardest hit.
CWforFreedom on August 31, 2010 at 7:03 PM
Technical Question: Are car sales counted when a sale is made to a consumer or fleet, or are they counted when cars are “sold” to the dealers? Seems like it could make a difference some months.
phillypolitics on August 31, 2010 at 8:47 PM