Daily Podcast: The Party's Over
As you’ve no doubt read, your duly elected representatives have rejected the proposed $700b Wall Street bailout plan. What happens next is anyone’s guess. Congress will undoubtably go back to the drawing board and try again. The stock market will either recover, tank some more or stay the same. The U.S. economy will either recess, depress or re-decompress. However this plays out, one thing is for sure: the days of “Zero Percent Financing for Anyone With a Pulse” are done. Dead. Finished. Over and out. Credit’s tighter than a superglued lug nut. At the same time, the market’s awash with used vehicles that no one wants. Millions of “average” people are backwards on their car loans– and scared. Even if residuals rebounded and zero percent abounded, the manufacturers can’t lure them into more debt. So they will do the right (only?) thing:nothing. They will simply pay down their existing car loans and run what they got. Meanwhile, the domestic automakers will deflate, dehydrate and die. The U.S. car market will eventually recover, but it won’t look anything like it does today. And TTAC will be there to chart the changes.
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