Comments on: Auto Sales Plummet Again

By: Mark E Hoffer

Mark E Hoffer — Wed, 03 Dec 2008 04:06:16 +0000

as addendum:

Is there any precedent for this in recent decades?

Via: Reuters:

* Porsche schedules 8 days of production stops at main plant
* Volkswagen may stop production in Wolfsburg for 3 weeks
* Audi says production halts are a precaution
* BMW says will cut further 400 temporary jobs in Leipzig
* Porsche shares down 8.8 pct, VW down 17.7 pct

(Adds Audi production stops, BMW temporary job cuts)

FRANKFURT, Nov 25 (Reuters) – German carmakers made another move to cut output levels towards the end of the year to offset slumping demand as the global economic crisis prompts consumers and companies to closely monitor their finances.

Sports car maker Porsche halted production at its headquarters in the southern German town of Zuffenhausen, for one day on Nov. 21, and planned to stop assembly for another seven days until end-January….
http://cryptogon.com/?p=5391

By: Mike in Nola

Mike in Nola — Wed, 03 Dec 2008 00:04:34 +0000

Thought it was interesting that the stock market shrugged it off.

I don’t know if anyone noted it, but volume on the big down day Monday was only a little bigger than Friday’s half day. Not tremendous selling, but not a lot of buyers. Today’s volume was a little bigger. Maybe it means something.

By: Soylent Green Is People

Soylent Green Is People — Tue, 02 Dec 2008 23:50:56 +0000

How is it that GM, a company that will be out of cash by the end of December and will not make it well into 1Q 2009, had people buying their stock today? Sure, Uncle Sugar will dole out cheap funds – it’s a given – but anyone who thinks that $16b is all it will take to right this ship of despair has got to be high on something.

By: mitchn

mitchn — Tue, 02 Dec 2008 22:58:01 +0000

Inre job reports on Thurs., Friday. That goof Jim Paulsen was on CNBC this morning to tell everyone that down -250,000 on jobs would actually be good news because, well, it could be a lot worse. IOW, it’s not a depression (yet), it’s only a recession. Time to load up on stocks!

By: SWMOD52

SWMOD52 — Tue, 02 Dec 2008 22:54:09 +0000

Tomorrow gotta sell that last bit of SPY and ORCL….

By: karen

karen — Tue, 02 Dec 2008 21:53:18 +0000

agree that 2009 will be a very difficult year; and i’m certainly not suggesting dow 14000. i do feel that between hedge fund redemptions, forced liquidations, deleveraging, margin calls and panic, there are FINALLY some stocks worthy of investment; and with half the competition wiped out or bankrupt, earnings may still exist for these companies.

By: Porsche87

Porsche87 — Tue, 02 Dec 2008 21:40:38 +0000

@karen: Economic reports on jobs and unemployment due out Thursday & Friday (and I think Nov retail sales on Thursday too). Unless something that is a major positive hits, I expect a drop at the end of the week.

By: Winston Munn

Winston Munn — Tue, 02 Dec 2008 21:33:29 +0000

I would be careful about jumping aboard the “all clear” train just yet. Wealth destruction of this magnitude cannot be so easily overcome.

During the 1990s, this study: Disentangling the Wealth Effect: a Cohort Analysis of Household Savings in the 1990s showed that the savings rate plummeted among those who realized the wealth effect of equities’ gains – the upper incomes. The housing “wealth effect” is much more serious as it ecompassed a broader area of incomes and affected more households.

Having depleted savings and with no wage increases and no equity in our assets, how can there possibly be growth?

Sounds more and more Japan-like to me, now that we have a NINJA economy.

By: bradp

bradp — Tue, 02 Dec 2008 21:20:26 +0000

@karen: i like that story, but in case it turns Grimm, i sold the uyg for 12.9%…..funny thing is, i used to be a buy and hold guy, maybe 2-3 trades a year….i think the volatility is growing on me :/

By: Dan Duncan

Dan Duncan — Tue, 02 Dec 2008 21:06:31 +0000

“We cannot let the American People know that we are in a recession! What to do? What to do?”

“Wait! I know: Deny Deny Deny.

“Then after the denials are exhausted, tell them that actually we’ve been in a Recession for over a year. Then, we’ll start passing around a neat little factoid that the Recession That Wasn’t is actually the 4th longest since the Great Depression.

“Once this is done, we can just sit back and watch them draw the nice, neat conclusion that …’This recession’s been going on an awfully long time. ‘ Then, they’ll think to themselves (with CNBC graciously providing the soundtrack to this inner monologue) ‘You know stocks typically start going up about 3-4 months prior to the end of a recession…and since this one’s been going on for so long now, it is obviously the time to start buying stocks. You know, now that I think about it—-this is a great buying opportunity. I’m buying stock at the bottom of the next great bull market. Wooo! Hoooo!!!’”