Posted on 10/01/2009 11:47:30 PM PDT by TigerLikesRooster
(Excerpt) Read more at businessinsider.com ...
Ping!
What’s amazing is they would take perfectly good cars and destroy them. I do wonder if a portion or more of these cars found thier way to illegal markets in other countries?
Home sales are up due to the %8000 tax rebate. Maybe they fall off a cliff too when rebate expires on Dec 1 2009
Under Zero, we can surely enjoy many cliff divings to come.
PLUS the last big spender is the Feral government. Everyone else is on a diet. But Feral spending via clunkers and house buying does stimulate the consumer to get in on the freebie. This ends abruptly when the sale is over
Same is happening with businesses these days
Having a big sale will not bring back these same customers once the sale is over. They are simply there to get cheap stuff and run
I wonder what a chart plotting the entire calender year of automobile repossessions from Jan - Dec 2009 will look like. ...........
And do it by zip codes. That would be entertaining
Was watching the Mechum Auto auction tonight and they were saying all those clunkers have to be crushed by law, which will permanently drive up the price of collectibles in the future. So... if you’re inclined to buy one, now’s the time; you’ll never see such low prices again. ‘Course, I know they’re just trying to sell cars, so I don’t know if that’s all true... but... it does kind of make sense to me. Some of those cars tonight looked great — and the prices were great, too. Darn... wish I had a big dry barn and lots of spare cash!
I did hear of dealers who paid the rebate money to new vehicle buyers and kept the used car for reselling. Talk about real captitalism working. Take that Cash for Clunkers program. I’ll bet there are lots of dealers who wish they would have gone this route. And really, what’s stopping them from continuing this on their own? There is no reason for them to stop.
It’ll be a Blue Christmas at Government Motors.
This needs a Duh tag! I will be interested in seeing the trend for the next six months LOL. I think it will be a relative flat- line. It’s not like you purchase one every six months. Hey congress- thanks for listening to solutions and picking the best one /sarc. How is this affecting the states? Are the folks who went back to work getting their unemployment benes renewed?
mmm mmmmm mmm...
Well gee, let’s just print more money and pass it out!
Anyone who did not think that auto sales in August were merely a pull forward of future demand knows nothing about economics and markets.
I was at a "Housing Summit" sponsored by a Wall Street analyst last week and every builder there knows that demand will fall off substantially after the expiration of the credit. that being said, many of the policy panelists and economists believe that there is a greater than 50% chance of the credit being extended by Congress.
Thanks for the ping.
Great comment - mangling metaphors and all ...
Thanks for that info.... I know people who might sell because of this $8000 credit and feeling things will turn awful for selling afterward
I hear this program cost $39 billion
Have you heard similar projections?
I think that around $30 billion was allocated but so far only about $15 billion has been used. There is some talk of expanding the credit to $15,000 or expanding it to all home buyers not just first-time. Both of those are less likely than the extension of the existing program.
The problem facing the housing industry is the enormous shadow inventory of foreclosures that have not yet hit the market. Anything to help the churning of the excess inventory will shorten the down cycle. A recovery in the housing market is a necessity for economic recovery.
That has me worried
Nothing but drek on the housing horizon
Tons/millions of empty houses in the USA
Illegal aliens built them in our bubble frenzy
And we make fun of cargo cults and Egyptians who wasted resources building pyramids
.
Another leg down...a big leg
Thinking about selling due to this
I envy renters who drive a hard cheap bargain these day
Thanks for all the info in your posts
I think we will get an extension @ $8000 but for all buyers...maybe upped to $10000
Any time. Unfortunately my business is partially tied to residential construction and the outlook is not good. The good news is that almost nobody thinks it will get worse. Hard to get worse than 500,000 housing starts when the natural rate of starts is around 1.5 million (1.1 million new households formed each year and 0.4 million housing structures are torn down). In this market it will take a couple of years to clear that inventory. The analyst who ran this conference is the best in the business and was the first to call 500,000 starts this year. She does not see housing returning to the 1.5 million level until at least 2014...
I think that around $30 billion was allocated but so far only about $15 billion has been used........
Still have until Dec 1 to use up the rest which I don’t think will happen. 5-7 billion left over will be another factor in extending the program. For your sake and mine. 0bongo showered billions on Wall Street thieves so why not? We need bailouts too.
Only an idiot would not have known this would have been the ultimate outcome.
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