Article

2020-05-09 Economy

Something Odd Is Going On In Parking Lots Around The US

[Zero] Over the last few weeks, we have been keeping a close eye on the growing glut of automobile inventory, exacerbated by demand falling off a cliff, plunging used car prices and rental car companies suffering from an unprecedented collapse in business (or, like Hertz, simply going bankrupt). To wit, just hours ago, we documented how declining fleet sales was having a profoundly negative impact on automakers. Previously, we pointed out how a crash in used car prices could be putting significant pressure on the rental car industry. And most notably, several days ago we also wrote that automakers were having so much trouble finding space for their unsellable inventory that ships bearing auto cargo from overseas were denied entry at US ports and sent back out into the ocean.

Now, we are seeing firsthand what buildups of inventory look like in major cities.
Graphic is of the Aloha Stadium located in Halawa, HI.

Posted by Besoeker 2020-05-09 03:38|| || Front Page|| [11130 views ] Top

#1 Hmmm, apparently people without money stop buying things. I must add this to my economic model.

Posted by SteveS 2020-05-09 11:34|| 2020-05-09 11:34|| Front Page Top

#2 I hear ya, but I'm not sure about that, Steve. I would hate to see how much credit card debt (at the ridiculously low APR of 18%) Americans have racked up.

Posted by Clem 2020-05-09 12:09|| 2020-05-09 12:09|| Front Page Top

#3 People are paying of credit card debt at record levels. Savings rate is up too. Of course, the narrative that we carry too much debt is now "We don't carry enough debt" and the narrative that we don't save enough is now "We save too much." In a couple months. the people who write this stuff should have their fingers cut off and have their tongues removed so they can't verbally dictate their bullshit....

Posted by M. Murcek 2020-05-09 13:18|| 2020-05-09 13:18|| Front Page Top

#4 Which is one theory on having low or negative interest rates, to stimulate the economy. That has been an utter failure in Europe...Japan, too, I believe. Yes, I'm all for savings rate going up (you're right, I did read that somewhere recently), despite the minuscule interest earned. But no matter. Saving, let alone saving for a rainy day, which Americans are woefully inept at (look at what's going on now) and not buying that 300-inch flat-screen TV, is good. But those credit cards...disgusting...18% or so...what's the Fed's rate nowadays, barely 1%?

Posted by Clem 2020-05-09 14:18|| 2020-05-09 14:18|| Front Page Top

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