Comment 28156

By David (anonymous) | Posted January 12, 2009 at 16:26:45

The US is definitely where much innovation comes from, but it's the bowl of rice/day workers that make it profitable. What's Walmart's greatest secret of success? It's that very little news comes out of China to show the shoppers the sweatshop conditions from which their "low prices" come from.

Chrysler is done - finished. Their 53% drop in sales was even before the nationwide story from analysts who said there is no way they can turn it around - scaring more customers away. This is probably necessary, to give GM and Ford a survivable market share, although it still won't put them in the black.

This Depression is 3-minutes into a 5-hour movie, and it will probably be "L" shaped. We aren't sliding down the backside of prosperity created by debt, but rather it is collapsing under us. We won't have that mountain to crawl back up on. This happend in minutes, even if it takes months to be realized, such as the USA losing 73,000 retail outlets in the first 6 months of 2009 - all overbuilt on debt.

In a free market economy, the free market should decide. Gov't money just postpones the inevitable, with a loss in value of everybody's savings account.

The problem with cars isn't just that Walmart salaries are trying to support those of Unions, but that the cost of the car puts the loan terms so long that people are upside-down on the debt for the life of the car - stuck. If they try to trade-in early, the remainder gets rolled into the new car loan, and now they are REALLY stuck... After a couple times of this, the car companies have lost a customer for years. In a world of $29 VCRs, the B3 product, and cars generally, have simply become unaffordable.

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