Errol

Just How Sensitive Is the Economy to the Auto Industry?

The bottom line is that the market is saturated. The autos have relied on easy money and cheap credit for the past seven years to sell more cars. Now that tool is gone. There is one car in the U.S. per person above the age of 16, and yet the autos ignore this fact and pretend that in 2011, things will go back to normal. Their whole model, like the financial model, is wrong. The government, high taxes, unions, and the piss-poor management and foresight are what make the autos a dinosaur.