Posted on June 3rd, 2008 in Daily Stock Market / Economic News - The Real Story
Whew! Lucky we are not in a recession, as CNBC tells us all day long, or this could be really bad news. Of course, this is being made out to be a ‘surging gas prices’ story and not a ‘broader economy’ and ‘housing-related’ story already.
These sorts of things are bound to happen when you shut a half million people out from using their Home Equity Lines of Credit in a single month. Due to this, a consumer falling flat on their face was one of the easiest calls in history. This is likely the first of many stories like this over the near-term.
I wonder if GM has access to one of the numerous new Fed facilities? If not, I bet they will soon. Then, the brokers and the auto-makers can pretend like they are banks!
Bloomberg has a very detailed report of this sad story that is worth a read.
June 3 (Bloomberg) — Asian automakers outsold Detroit’s Big Three in the U.S. for the first time last month as fuel-conscious consumers shunned General Motors Corp. and Ford Motor Co. trucks for Honda Civics and Toyota Corollas.
Japanese and South Korean companies boosted May sales by 3.7 percent. GM, Ford and Chrysler LLC fell a combined 21 percent as gasoline near $4 a gallon drove U.S. consumers from pickups and sport-utility vehicles.
There is one auto sector analyst out there who smells a rat…people get paid for this?
“I’ve never known the market to change this much this quickly in my lifetime,” said Jim Hossack, a market analyst for AutoPacific Inc. in Tustin, California, and former engineer for Ford, Chrysler and Mazda Motor Corp. “It’s fueled by gasoline prices, obviously, but there’s more to it than that.”
Anyway, this is as bleak as it get and definitely worth the read. –Best, Mr Mortgage
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