Tuesday, November 11, 2008
Severe Economic Downturn: Bye Bye Car Culture!
Last night our local PBS station aired a program that gave a firsthand look at the 1929 Stock Market crash. I'm into paralells these days, and the paralell lines cannot be avoided. As indicated by the news about GM, Starbucks, DHL, Circuit City and the U.S. Postal Service, we're not out of the woods yet. If GM falls, so be it. That company has done more to steer America on the wrong course when it comes to oil dependency than any other single force. They slit their own throat anyway. My advice? Buy stock in GM, in Ford, in Chrysler. Buy as prices continue to fall. If one or two go belly up and disappear, you'll have one to fall back on. Remember, Chrysler already has three electric car models planned for 2010. GM claims to have the Volt, but it's mostly a dream at this juncture. DON'T BUY GOLD. It's way too high!
The big problems right now for the auto industry:
1 - How to unload a bunch of vehicles nobody wants: despite gas @ $2.29 a gallon, Americans fear it could be back to $4.11 in a heartbeat... they've already experienced that and are not likely to forget it.
2 - People who do have a little money and NEED a new car are either waiting for more hybrids and/or can't get a bank loan!
The US Big 3 automakers should get together and form their own credit company, so a person with a job could walk in, plunk down $1000 and drive out with a new car, no questions asked. (Of course the car would have to be like a Hyundai, 33+ mpg in the city, and NOT like one of those tin-can Suzukis or Aeros or "Smart Cars" in which you are cramped and most certainly dead if you get hit by a garbage truck or city bus.
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