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Next victim of mortgage mess: Auto sales
http://money.cnn.com/2007/08/21/news/companies/autosales_mortgage/index.htm?postversion=2007082118 ^ | 8-21-07 | Chris Isidore

Posted on 08/22/2007 5:10:05 AM PDT by Hydroshock

NEW YORK (CNNMoney.com) -- Already-battered U.S. auto sales could be the next victim of the problems with mortgages, declining home and stock prices as potential car buyers delay purchases due to uncertainty.

Industrywide U.S. auto sales in August could be off 10 percent from a year ago, according to an early read from sales tracker Edmunds.com. That follows July sales that were 19 percent below year-earlier levels.

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Justin Urquhart Stewart of Seven Investment Management joins CNN to talk about mortgages and the markets. Play video

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CNN's Gerri Willis offers tips for weathering the mortgage industry troubles. Play video

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Troubles in U.S. subprime mortgage market spread to those with decent credit. CNN's Maggie Lake reports. Play video

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Jesse Toprak, executive director of industry analysis for Edmunds.com, said that the downturn in home values and credit issues that were seen in the July numbers could be an even bigger factor this month.

"I think the issue is becoming more pronounced," he said.

Sales weren't just weak at domestic automakers, such as General Motors (Charts, Fortune 500), Ford Motor (Charts, Fortune 500) and Chrysler Group. Year-over-year sales fell in July at Toyota Motor (Charts) and Honda Motor (Charts) as well. Many forecasters are cutting full-year auto sales targets in the face of these weak summer sales. And some experts say the turmoil in housing could throw even more dirt in the gears.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy
KEYWORDS: allislost; applesonly5cents; autosales; breadline; chickenlittle; credit; cropfailures; crywolf; depression; despair; despondent; dustbowls; gloomy; glum; grapesofwrath; helpme; highdivefromawindow; hoovervilles; mortgage; nohope; nojobs; pottersville; skyisfalling; soupkitchens; tomjoad; vulturegram; willpostjunkforfood; woeisme
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1 posted on 08/22/2007 5:10:07 AM PDT by Hydroshock
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To: Hydroshock; ex-Texan

ping


2 posted on 08/22/2007 5:17:03 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock

It’s time for Paulson and W to come out once again and tell us that subprime is contained.


3 posted on 08/22/2007 5:26:24 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Moonman62

You an I disagree on many things,but we both know that this will affect every part of the economy. If Joe Lunchbucket does not think his house is secure he is not going out to spend on stuff he does nto have to.


4 posted on 08/22/2007 5:29:26 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock

The media elites are going to keep yapping and drive consumer confidence down and the next chapter is recession.....


5 posted on 08/22/2007 5:30:13 AM PDT by Thermalseeker (Made in China: Treat those three words like a warning label)
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To: Thermalseeker

” The media elites are going to keep yapping and drive consumer confidence down “

That’s right — there’s nothing wrong here..

Money will keep falling from the sky (or from the Fed - same thing) forever....


6 posted on 08/22/2007 5:32:30 AM PDT by Uncle Ike (We has met the enemy, and he is us........)
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To: Hydroshock
An often underlooked career option in the workplace today is auto mechanic. People still have the notion that auto-mechanics are mostly high school dropouts and is one step up from pumping gas or flipping burgers.

However, that is not the case today. Since most of the easy jobs has gone to franchises (i.e. oil changes to Jiffy Lube and tires to NTW), an auto mechanic today really needs to know his (or her) stuff. It is now a highly skilled position that requires some degree of computer literacy as well as mechanical know-how.

Therefore, a good mechanic often commands salaries that are equivalent to a professional position and is a very good career option for those inclined. Especially since it appears that people are hanging on to their older cars for more years.

7 posted on 08/22/2007 5:42:37 AM PDT by SamAdams76 (I am 16 days away from outliving Marvin Gaye)
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To: Hydroshock
Play video...Video More video

Good thing the video market isn't effected...

8 posted on 08/22/2007 5:43:33 AM PDT by theDentist (Qwerty ergo typo : I type, therefore I misspelll.)
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To: Uncle Ike
That’s right — there’s nothing wrong here..

PULEEZE! I never said there was nothing wrong. There clearly are problems in the financial world, but not nearly what is being portrayed in the media. When when a financial institution loans 110% of the value of a property with little or no money down to a deadbeat who has nothing to loose you are going to have problems. That is a fact and that is what bankruptcy is for. If you mismanage your assets, particularly those financed by others, you forfeit. As my grandmother used to day "you play in the creek and your feet get wet." It's really not complicated and there are provisions in the system to take care of it. No bailouts, no way. Get it?

9 posted on 08/22/2007 5:47:32 AM PDT by Thermalseeker (Made in China: Treat those three words like a warning label)
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To: Thermalseeker

” No bailouts, no way. Get it? “

Of course I ‘get it’... From the “it’s all the media’s fault” tone of your initial post, I didn’t have the impression that you do....

I stand corrected....

The counter-media-hype ( ‘nothing to see here’) is just as, if not more, destructive to clear thinking as the ‘sky is falling’ side.

There are, indeed, serious structural cracks starting to show, and the obfuscation from either side isn’t conducive to adressing the problems.....


10 posted on 08/22/2007 5:53:19 AM PDT by Uncle Ike (We has met the enemy, and he is us........)
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To: Hydroshock

Yup, I have no intention of buying a new vehicle. I plan on driving my truck until the engine falls out.


11 posted on 08/22/2007 5:54:41 AM PDT by corlorde (New Hampshire)
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To: SamAdams76
You are right on that, my nephew went to Nashville Auto Diesel College and the tuition was more than my son’s at a 4-year college
12 posted on 08/22/2007 5:55:05 AM PDT by sticker
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To: Moonman62
It’s time for Paulson and W to come out once again and tell us that subprime is contained.

The Fed Chairman started it, though....

13 posted on 08/22/2007 5:55:47 AM PDT by BlabItGrabIt (Sly, Shy, and Wry)
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To: SamAdams76
I am a mechanic...I was a hands-on mechanic in the shop for 15years.
I am still a mechanic, yet I sit in front of this computer all day. I support mechanics at dealerships in the field.
I can diagnose and “fix” and car sitting right here, from 1000 miles away.

A mechanic can field test (drive) a vehicle and all the information from that vehicle shows up right here on my monitor.

You are absolutely correct....I have done years of grimy mechanics but its not like that any more. There are still “wrench turners” that switch out parts in the garage....they make an honorable living doing that. Still, its not shadetree mechanics anymore.

14 posted on 08/22/2007 5:59:29 AM PDT by shbox
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To: Hydroshock

If I assume that 50% of the 300M Americans are of legal driving age, then that leaves a potential of 150M customers. Assume the average life of cars/trucks to be 7.5 years, then there is a natural need of nearly 21M cars/trucks per year. Yet the current annual market is significantly less than that at $16.4ish million.

I don’t see the auto market declining with any signifigance. In the industry, we hear this claim every year and then we hear those forecasters sound shocked when there is slight year over year growth.


15 posted on 08/22/2007 6:02:35 AM PDT by CSM ("The real question is, why donít we hate them?" - Veto! (8/9/2007))
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To: SamAdams76

I agree completely with you. I have a couple of friends that are mechanics and they make a great living. They work hard and earn every penny of it too!


16 posted on 08/22/2007 6:04:03 AM PDT by CSM ("The real question is, why donít we hate them?" - Veto! (8/9/2007))
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To: Moonman62

We need Inigo Montoya to pop up in the background at one of these news conferences:

“You keep using that word. I do not think it means what you think it means.”


17 posted on 08/22/2007 6:04:36 AM PDT by NVDave
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To: BlabItGrabIt

Bernanke seems to have stopped saying that. He seems to be slowly acknowledging reality.


18 posted on 08/22/2007 6:05:50 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Uncle Ike
From the “it’s all the media’s fault” tone of your initial post, I didn’t have the impression that you do....

Sorry you took my initial post that way, but that wasn't what I meant. The media circus didn't cause the subprime mess, but they certainly can fuel fear by constantly running doom and gloom pieces, sorta like blowing on coals to stoke up a fire. I saw it happen in the '70's, i.e., the "misery index", "stagflation", etc., and again preceding every recession since, particularly when the 'Pubbies occupy the Whitehouse. Folks that are paying attention, like you and me, know better, but the casual observer is who they are aiming at. I, for one, am convinced that the Dims, with the help of their laimstream media buddies, would drive this country into depression if it meant it would hurt GWB and bring victory to the Socialist Democrats. I believe they are that obsessed with his downfall.

There will always be some impending crisis in the financial world. There will always be people offering bad loans and people lining up to screw themselves. You have the right to be an idiot in this country, but you do not have the right to use my tax dollars to fix your screwup. (yet)

19 posted on 08/22/2007 6:09:34 AM PDT by Thermalseeker (Made in China: Treat those three words like a warning label)
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To: SamAdams76

Young men out here in the rural areas keep asking me if it is worth getting an engineering degree, because a) it is useful and b) engineering pays well.

I tell them that engineering does pay well, but you’d better not step off the treadmill of learning the “latest thing” or otherwise your job will be outsourced in a hot second over to India.

Then I tell them that if they get into something like diesel repair... oh, can they make some nice money. Good diesel mechanics are pulling down some serious money, have good job security (because the engines are right here, and they need to be repaired right here, so they can get going right now) and it certainly isn’t boring: engine techs have to have quite a bit of training now, and it takes brains as well as attention to detail to make it as a diesel tech.

You oughta see what diesel techs make at some of these gold mines around here. And well equipped shops? Farmers dream of having a shop 1/10th as nice.


20 posted on 08/22/2007 6:10:01 AM PDT by NVDave
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