Discussing the auto industry’s struggles due to the credit crunch, with Mike Jackson, AutoNation chairman/CEO
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"My formula for success is rise early, work late and strike oil." —John Paul Getty
Consumer Credit outstanding fell $14.8b in Sept seasonally adjusted, almost $5b more than expected and marks the 11th month in the past 12 of declines. At $2.456T outstanding, it is 4.9% below the record high in July '08. After a flat reading in Aug, (didn't fall b/c of the CARS program), non revolving debt outstanding fell by $4.9B. Revolving (mostly credit cards) balances outstanding fell by $9.9B. To fully put into perspective today's data, look at the current level of consumer credit (doesn't include mortgages, the biggest chunk of consumer credit) relative to GDP. As of Q3, it totaled 17.2%...
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November 12th, 2008 at 12:40 pm
Who whichever auto company goes BK first I’d buy from to support the US. I’m not happy with my Toyota.
November 12th, 2008 at 12:58 pm
I think the market is very close to out of sellers. With all funds on CNBC announcing heavy cash positions who’s left to sell?
This works well for my book but I think I’m onto something here.
November 12th, 2008 at 1:35 pm
Allocate “bailout” money to the “Pickens-Gore” plan for energy independence and infrastructure rebuilds. Give $25B to Tesla Motors and other startups. These industries will hire workers laid-off from other companies.
Don’t give our taxpayer money to the mismanagement morons in Detroit. “Give it” to ANYONE ELSE.
November 12th, 2008 at 2:08 pm
I’ve had Toyota’s for years, with no problems to speak of, except for the recalls (2 which didn’t cost me a thing). I have a T-100 that has 150,000 miles on it; same thing. This is the final nail that can be put in the union coffin if these legacy companies go bankrupt and break those contracts. The Big 3 didn’t care about pushing any designs that would help us in the future (limited petroleum resources cannot be denied), so why should they be bailed out now? This is a free market country that is becoming socialized and its a shame.