And they are right.
More words of wisdom coming from a car salesman???
Clemenza to CEO: GO (Expletive) yourself. Keeping the interbank rate flat will prevent moral hazards and keep inflation tame. The only folks who are whining about a rate cut are folks like you who are dependent at financing sales of your junk to folks with middling to poor credit histories, to say nothing of certain fund managers.
“They need to begin to cut rates, not just once but several times,” he said of U.S. monetary policy makers. Jackson, who runs the largest publicly traded car dealership group in the United States, said the pressure on the economy is hurting auto sales.
Translation; The Nations biggest used car saleman is telling you something with sincerity.
Buyer beware.
“Another CEO urges a rate cut.”
Let’s fix this — “Another CEO, who isn’t an economist, whose business depends on having lots of easy cheap credit, urges a rate cut. His urges us to do this by saying that we’ll have another recession if we don’t cut rates.”
there.
fixed it.
Any hogwash about some mythical inflation in some distant future is just smoke 'n' mirrors to keep Dr. Bernanke's actual employers rolling in tall cotton.
So, would deep rate cuts by the Feds put the US dollar on life-support?
When there is a credit crunch, weak businesses die off, the strong survive. Then the strong spread and take over some of the business from the fly by night operators who died. And new upstarts can get a chance to get in on the action.
I bought Citigroup a week and a bit ago near the lows, thinking it will be one of the strong to survive. Get back in the mortgage game, and be able to charge fat spreads. We will see how it goes!
The autobusiness itself needs a shakeout. Way, way too many dealers for the domestics, and the domestic companies themselves at least one needs to die off. But with cheap credit they keep limping along, undercutting everyone else just to stay alive.. and in the process killing profit margins.
Good for them. The rate aint getting cut.
Happiness is a paid-off mortgage, and no car payments, ever.