“.. J.D. Power predicted the retail selling rate — sales through dealerships, as opposed to the less lucrative fleet business — dropped to 8.9 million light vehicles from 9.2 million in July. “The economy is the big cause,” said J.D. Power forecasting director Jeff Schuster.”
When I see so many vehicles on a dealership lot, of many different types, I often wonder who’s paying for all this inventory, surely not the owner, I have always thought the manufacturers sent the cars to them on consignment, to sell them if they can. Every so often I see trailer trucks off- loading cars when there are still hundreds on the lot yet to be sold.
Indeed, it would be nice if we actually made something. When was the last time you bought something made in USA. With the US devaluing their currency, Canada is following suit. We are making the same errors as were made in the great depression. Canadian banks hold US treasury bonds as debt. Since the bond is rapidly becoming junk we must dump the US bond at a huge financial cost to us. Money in our pockets won’t buy us very much when it is worth very little. It’s just paper that has value because they say it does and that’s it.
Hopefully Canada wises up and converts their currency into gold, precious metals and agriculture. They will need that to compete with the rest of the world as they will soon dump the paper dollar(it just makes sense). Canada has large surpluses of gold ore which could run short as the dollar prevents exploration being cost effective. Gold will probably go up to over 2000.00/ounce.
Keep an eye on how the Canadian dollar does in the world markets – it won’t be pretty. The sad thing about it their government is making huge mistakes for now. It is obvious the Bank of Canada is telling us the truth from what is out in the media. They will stop propping up paper currency as soon as the creditor nations stop. Keep your fingers crossed.
Auto sales rebound sputters Christine Tierney / The Detroit News
A recovery in auto sales in the past year seems to be losing steam, with forecasters expecting August sales to show a continuation of the uncertain trend seen since March.
Compared with last August, when the government’s cash for clunkers program fueled a spike in demand, monthly sales are likely to be down sharply.
But some forecasters believe the selling pace may have slowed even since July, when the seasonally adjusted annualized rate of sales totaled 11.54 million cars and light trucks.
August sales estimates range from as high as 11.8 million light vehicles to fewer than 11 million.
The selling pace for the first seven months of the year is 11.2 million light vehicles — on the low end of industry estimates.
Some forecasters are now trimming their annual sales estimates amid growing concerns that the economic recovery is slowing.
Paul Taylor, an economist at the National Automobile Dealers Association, said the weak housing market is holding back the recovery in auto sales. Many people figure that if they were going to lose their jobs, they would have lost them by now, he said.
But homeowners aren’t confident that the housing market is recovering. “We need it to be solidly flat or up,” Taylor said. “That’s not happening.”