it is true. cash for clunkers depleted 2009 inventories. so now the factories have to hire people to build 2010 inventories. those people will spend their money buying things that will also have to be restocked. hopefully soon you will have an expanding economic cycle that will be self supporting. isnt that how a demand economy works? you surely dont expect employers to hire people before they see demand.
lol i think what the fight on et and many boards is THE INCREDIBLE GRASPING FOR STRAWS WALL STREET HAS EMPLOYED SINCE MARCH TO SUCK PEOPLE INTO THE MKT TO ENRICH THEMSELVES. a few examples are the gm and toyota story. gm filed bk and has cut there size in 1/2 the past few years. THEY FIRE 100'S OF THOUSANDS OF PEOPLE AND REHIRE 2500 AND THE MEDIA HYPES IT TO NO END. new home sales were over 2 mil in 2006 and they come off a 300k bottom and are at 400k and the media goes nuts to start a frenzy. yes in other times of history there could be some cause for excitement but this time its really different and wall street damm well knows that yet keeps up the hype. WE HAVE $5 TRILLION OF CREDIT LINES THAT HAVE BEEN TAKEN AND MUCH MORE TO COME. WE'RE COMING OFF A 25 YEAR CREDIT BUBBLE AND DELEVERAGING WILL TAKE YEARS TO A DECADE. this 100% assures the consumer is suffering and he can't spend. wall street knows this yet continues to hype to no end sucking in millions of people addicted to chasing stocks from previous years.SO HERE WE HAVE STOCKS LIKE JPM OR WFC BACK NEAR BUBBLE HIGHS OF 2007 WHEN EVERYTHING WAS CLICKING AND WE KNOW EARNINGS WON'T RETURN THERE FOR YEARS.but i'll be the first to admit till the mkt turns down none of the above matters
As long as the stupid consumer goes out and spends money they dont have on credit cards and HELOCS, the car industry will be great once again. As long as they create programs like cash for clunkers all is good in the economy once again.
there is no guarantee that it will be self sustaining. the consumer is highly indebted but spending what amounts to a week of what we spend on the war in iraq on this cash for clunkers program seems like a small price to pay.
banks are printing money right now thanks to the fed. the interest rate spread is at a historic high.
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With our elected leaders, economists, et al, you'd think SOMEBODY would see SOMETHING coming... wouldn't you? Does it ALWAYS have to be "excess this and excess that... all with unintended consequences".. ??
I would agree on that but it's kind of hyped up to be things are OK again...but probably in reality if it's to prop things up for a little bit, only to go back to where things were, then is it worth it in the end for the little shot in the arm? I guess it really depends on how these jobs are classified...anything not "part time" or the wonderful "full-time temporary" may actually last for a little while. Anything else is downsized at the next hiccup which in this case would only be within the next 6-9 months. Then it's back to square one.