Detroit Vs. The U.S. Economy: There is Doom and Gloom and Things Go Boom…
Not to add to U.S. auto execs angst, but consider the Federal Reserve Board’s “ emergency meeting” to cut interest rates by three-quarters of a percent. It’s the first cut between regularly scheduled meetings since the September 2001 terrorist attacks. While a recession may provide some short-term relief to gas prices, oil analyst Tom Kloza offers this advice (via CNNMoney): "I wouldn't go out and buy that Hummer; It's still prudent to behave as if record gas prices are just one event or one economic recovery away." Mark Zandi, chief economist at Moody's Economy.com tells the AP (via WTOP News): “When the economy stumbles, you have to begin living within your means, or you'll be forced to do so." Example given: Denise Dorman of Geneva, Illinois. To avoid making new-car payments, she’s not going to replace her 12-year-old Jeep Grand Cherokee (with 125k miles on it). If that’s the start of a trend, Chrysler and the rest of the industry are headed for big trouble.
Glenn is a baby-boomer, born in 1954. Along with his wife, he makes his home in Connecticut. Employed in the public sector as an Information Tedchnology Specialist, Glenn has long been a car fan. Past rides have included heavy iron such as a 1967 GTO, to a V8 T-Bird. In between those high-horsepower cars, he's owned a pair of BMW 320i's. Now, with a daily commute of 40 miles, his concession to MPG dictates the ownership of a 2006 Honda Civic coupe which, while fun to drive, is a modest car for a pistonhead. As an avid reader, Glenn enjoys TTAC, along with many other auto-realated sites, and the occasional good book. As an avid electronic junkie, Glenn holds an Advanced Class amateur ("ham") radio license, and is into many things electronic. From a satellite radio and portable GPS unit in the cars, to a modest home theater system and radio-intercom in his home, if it's run by the movement of electrons, he's interested. :-)
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This recession is different in that there is no obvious sector to lead the recovery. The housing sector can't lead because of the sub prime securitization mess. The auto sector can't lead because of the Peak Oil situation and the cut off of the home equity source of funds. That leaves the alternative fuel sector which is regularly slammed on this site. Maybe doctor's doing colonoscopies can lead the economy to recovery. I've got one scheduled for next week.
"Kevin: Big deal, a recession’s not the end of the world — it’s a 6-month decline in demand followed by 7 or 8 years of growth." when Japan's economy hit the skids circa 1990, nobody thought it would last 15 or 16 years. And China's economy is built on the idea that Americans will continue to buy cool but really unnecessary stuff forever. Having lots of bitter umemployed young men loafing around without any chance for a wife, has, traditionally, made the Chinese Government a little nervous. the announced interest cuts will do nothing as it was interest rate cuts Circa 2000 to head off the Dot.com recession that created the boom over the last 7 years.
and you thought that little gray haired Ron Paul is just a freak with his followers paultards. You should have listened to him. And US industrial manufacturing is smaller than that of Germany and Japan, with China dramatically approaching.
According to MSNBC, businesses that do well in a recession include: And “funeral home directors and accountants, can safely assume a recession won’t have much impact on death and taxes.” For God's sake, don't get behind on your taxes too!