Car Sales Up, Economy Fixed—Not
By Greg Hunter’s USAWatchdog.com
There was good news for the car industry today. Just about every car company sales in March were up and in double digits. The car industry hasn’t seen this kind of monthly performance in nearly four years. The AP reports, “General Motors Co. said Tuesday that its U.S. sales rose 12 percent compared with last March on solid demand for cars and small crossovers that achieve 30 miles per gallon or better on the highway. Chrysler Group’s sales jumped 34 percent as buyers went for Fiat small cars and Chrysler sedans. Toyota Motor Corp. said sales were up 15 percent, with sales of the Prius hybrid climbing 54 percent for the month. Sales at Ford Motor Co. rose 5 percent as demand for the Focus small car rose sharply.” (Click here for the complete AP story.)
This was partly because of small car sales, but a much bigger factor is sub-prime financing. I wrote about this in a post about a month ago. (Click here for the complete story.) At least 40% of car loans are high risk borrowers. I say it’s back to pleasure now and lots more pain later. Loaning money to people who will have a high probability of default is no way to run a real recovery. If we were in a real recovery, then people like billionaire Hugo Salinas Price wouldn’t be saying things like, “I think that unless we see legislation, somewhere, that is rational and recognizes that gold and silver are really different forms of money, and that this whole scheme of paper is unworkable, then the world is going to go down in flames. The only thing that would last will be people’s savings of gold and silver.” (Click here for the complete interview recently from King World News.)
Did you get that? Once again, “. . . the world is going to go down in flames.” Why would a billionaire say this if the economy was really “recovering”? The simple answer–It’s not! So what’s coming if it’s not a recovery? Chris Duane of TheGreatestTruthNeverTold.com says, “Street justice is coming to America.” Here’s his video (in the form of an interview) to explain his prediction:
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
I sold a property at the peak of the real estate market in the NYC area and was fortunate enough to pocket some sizeable change. I signed a lease for my next property and would have lost over $100,000 in equity in the property over the next three years if I’d purchased.
Today, I have a couple of coworkers who will occasionally look at me as though I have three heads and ask me why I’m not buying when rates are so low and pricing has fallen so much. I tell them that I don’t want to be under water and tied to a worthless property that enslaves me to a bank. They shake their haeads, but won’t take the time to listen or understand that cities like Detroit are just a prelude to what’s happening to the entire US economy as we begin (we are only at the beginning) to suffer the consequences of having eliminated our industrial base prior to dissolving the currency.
Car sales are up because there hasn’t been enough history or widespread economic loss yet for people to recognize the trend and understand where we’re heading. My prediction is for a downward economic spiral until the quality of living in America gets so bad that Americans who used to believe in sovereignty will gladly surrender it, if it means they’ll be able to feed and clothe their families. There are new/recent laws in place to manage those who will remain strong in their beliefs and oppose a new globally oriented economic restructuring that the G8 and G20 have been working towards, in alignment with World Bank, IMF, WTO, and UN goals.
Sean,
Great comment! Please come back with more!!
Greg
Sad but likely true
In a lawless land gold,guns and trusted friends is the rule of the land. I hope it don’t come to that.
I have E-mailed all my so called leaders and told them,this lawlessness has only one, out come.
The BRICS countries must be telling the G5 counties this lawlessness must stop, are your inflated money will not be wanted.
Subprime lending is very likely a factor in the sales increase. Yes, there will be some people who don’t keep up with the payments and will lose their cars, but the majority will manage to keep them. A lot more subprime mortgagees have successfully paid on their homes than have been foreclosed on. That fact is easy to forget when foreclosures keep rising.
I am inclined to wonder if people, seeing the writing on the wall, have decided to get a car while they still can. There is a sense of big changes coming, and decreased access to goods like autos seems very likely. I think that many new car buyers have decided to face the Greater Depression with the newest vehicle they can acquire because they have a feeling it may be a very long time before they get another.
== The Empire of Our United Korporations of Amerika Is Crumbling ==
Well, folks, I have three responses to Mr. Hunter’s dire conclusions: (1)
YEP, (2) YEP, and (3) YEP.
The Amerikan ship is rudderless, foundering on the shores of Greed,
Stupidity, Denial, and Gullibility fostered by our “leaders.” The
ship remains beyond repair, its passengers and crew now a clone of the
Titanic, no? We all should be pondering our fate as we watch reruns
of the film “Mad Max. — Larry W. Bryant
Larry W. Bryant,
Please don’t hold back next time. I am being sarcastic of course and I love your brain!!!!!
Greg
I used to work in the new car business & also the wholesale side too. We/I wholesaled out of a new Nissan dealership & stay in touch with many who work in sales, finance & repairs. From the finance side approval rates are way up even when many who’s credit score is below sub par, this is bad business period he said, but we are moving cars & trucks. In repairs & maintenance they are all working over time & can’t keep up with the demand to keep older cars on the road! The owner of the Nissan store told me that the repo business has already exploded after people have spent their tax return checks & now can’t make the insurance or car payments because most have had their hours cut or have lost their jobs due to plant closings.
I am glad my SUV is in great shape & gets good gas mileage & I owe nothing on it. After the collapse & Gold is revalued to mark to market, who knows, a oz of gold may buy a new truck & a small car!
Thank you for the real news from the front lines of the real economy!!
Greg
0% financing.
Buddy Roemer is the leading declared candidate at Americans Elect (which allows you to sign up for free and nominate/support a candidate to be on the ballot in all 50 states). I recommend you support Buddy. He grew up on a cotton farm, then went to Harvard at the age of 16. He was a conservative Democrat who voted on Reagan’s side alot, so he was a natural to switch to Republican (now, he’s Independent). He served as Louisiana’s Governor, but has been in the private sector the last 20 years, starting and running three successful businesses (including a $750 million bank which took no bailouts and foreclosed on no one ). He’s a 68-year old grandfather who had no desire for politics, again- but says the country is on the wrong track.
Our DC politicians are funded and steered by wealthy campaign donors profiting off our “Ponzi-scheme-like”, “financialized” / “Wall St. Investment Banker-led”, “Fed-Treasury-abetted” system and off of the “Global Economy” (short-term profits feeding off the American people as consumers, not producers). These elites (such as the big shots and owners of Goldman Sachs, GE, etc..) have made (and are continuing to make- “thanks to the Fed giving them $16.1 trillion in secret bailouts , 2008-2010 as reported by the GAO–and counting- of zero-interest loans and “toxic assets swaps” and the SEC-regulated FASB in April ’09 allowing them to massively over-value their ‘underwater’ assets”) huge profits off this “race to the bottom” as the middle class gets poorer.
Roemer knows the “games” these people use and how to fix America (“stop the corruption”, “stop the financial greed”, “put the banking and finance communities back on a ‘short leash’ and ‘solid ground’ ” and “put America back to work- getting the capital back behind production”). Roemer says, “DC’s not broken- it’s bought and paid for”. He wants to kick the big money out of politics and won’t take a donation over $100.
One, street-wise definition of “insanity” is to “keep doing the same thing and expect different results”. We have been “bouncing back and forth” between these modern, “Wall Street Investment banker-financed”, “free trade” globalist Republocrats and Demicans, now for twenty years (of course, the “mainstream”, dinosaur media always tells us, “they’re the only realistic ones to choose from”).
It’s time “We The People” take over this country, again with a candidate like Andrew Jackson or Teddy Roosevelt. Check out buddyroemer.com and americanselect.com instead of just complaining all the choices suck !