Guest Post by Eric Peters
Wouldn’t it be nice to know the canary’s going to sing before he actually does?
Very few saw the crash coming back in ’08 – which was the last time the car industry hit the linoleum and the cry resonated from Detroit to DC: I’ve fallen – and I can’t get up!
Continue reading “The Glut Cometh”
Guest Post by Eric Peters
Almost every negative thing happening in the car business – in particular, ludicrous technical complexity for the sake of electronic gimmickry and also to cope with diminishing returns federal “safety” and emissions mandates – could be gotten under control by the simple expedient of cutting off the monopoly money/debt-financing that makes it all possible.
The seven year loan.
“Free” money (zero or very low interest).
Give-away leases.
The car industry is riding a bubble that’s proportionately as large as the housing bubble of a decade ago. And it is going to pop. For the same reason that a wave has to crest and wash ashore, once set in motion.
Continue reading “Pop Goes The Car Bubble . . . And It May Not Be a Bad Thing”