................Deflation Is Everywhere!
"As Credit Tightens, the Auto Industry Feels the Pain," see http://www.nytimes.com/2008/05/27/business/27auto.html.
Part of the article:
"The auto industry is getting sideswiped by the housing crisis.
Auto lenders and banks, closing their wallets, have prevented hundreds of thousands of consumers from getting the financing for a car. Home equity loans, which had been used in at least one of every nine deals, when lenders were more generous, are no longer a source of easy money for many prospective buyers. And used-car prices have fallen nearly 6 percent as repossessed cars and gas-guzzling trucks and S.U.V.’s flood auction lots.
Those forces, on top of the softening economy, are putting enormous pressure on the American auto industry as it faces what may be its worst year in more than a decade. About 14.95 million vehicles are expected to be sold in 2008, down from 16.2 million last year, as sales reach the lowest levels since 1995, according to the marketing firm J. D. Power & Associates.
The impact on the broader American economy could be profound. Not only is the car a consumer’s second biggest purchase after the home, but the auto industry remains one of nation’s most important economic engines. With less money available to fuel the industry’s growth, the businesses that support it are also facing the prospect of a sharp slowdown.
“It is a bleak picture, and it all hinges on the availability of financing,” said William Ryan, a financial analyst at Portales Partners who has followed the auto business for years. “The whole universe related to the auto industry is touched in some way — parts suppliers, manufacturers, salespeople, trucking people, the paint and metals industries. Even semiconductors.”
Within the auto sector, problems stemming from the continuing tightening of credit have already started to spread. Auto lenders like Chase, Capital One and GMAC are finding it harder and more expensive to obtain money for loans. Profits also look dimmer as the lenders absorb losses from defaults and pull back from making new loans."
Have you seen any other gold writer talk about the plainly obvious major deflationary factors?
.......http://www.JoeFROCKS.com/ .
NEM XAU HUI
Part of the article:
"The auto industry is getting sideswiped by the housing crisis.
Auto lenders and banks, closing their wallets, have prevented hundreds of thousands of consumers from getting the financing for a car. Home equity loans, which had been used in at least one of every nine deals, when lenders were more generous, are no longer a source of easy money for many prospective buyers. And used-car prices have fallen nearly 6 percent as repossessed cars and gas-guzzling trucks and S.U.V.’s flood auction lots.
Those forces, on top of the softening economy, are putting enormous pressure on the American auto industry as it faces what may be its worst year in more than a decade. About 14.95 million vehicles are expected to be sold in 2008, down from 16.2 million last year, as sales reach the lowest levels since 1995, according to the marketing firm J. D. Power & Associates.
The impact on the broader American economy could be profound. Not only is the car a consumer’s second biggest purchase after the home, but the auto industry remains one of nation’s most important economic engines. With less money available to fuel the industry’s growth, the businesses that support it are also facing the prospect of a sharp slowdown.
“It is a bleak picture, and it all hinges on the availability of financing,” said William Ryan, a financial analyst at Portales Partners who has followed the auto business for years. “The whole universe related to the auto industry is touched in some way — parts suppliers, manufacturers, salespeople, trucking people, the paint and metals industries. Even semiconductors.”
Within the auto sector, problems stemming from the continuing tightening of credit have already started to spread. Auto lenders like Chase, Capital One and GMAC are finding it harder and more expensive to obtain money for loans. Profits also look dimmer as the lenders absorb losses from defaults and pull back from making new loans."
Have you seen any other gold writer talk about the plainly obvious major deflationary factors?
.......http://www.JoeFROCKS.com/ .
NEM XAU HUI
Labels: Gold, Gold Stocks, HUI, NEM, Silver, Silver Stocks, XAU
posted by Joe Ferrazzano at
4:15 PM
3 Comments:
Inflation is too much money chasing too few goods. Someone needs to tell 99% of the gold writers that what's going on now is the diametric opposite situation.
By
Joe Ferrazzano, at 4:37 PM
LOL!
By
Joe Ferrazzano, at 4:46 PM
Someone also needs to tell most gold writers that trees don't grow to the sky.
By
Joe Ferrazzano, at 5:07 PM
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