Okay in order a economic and political analyst for any think tank which transpires with operate online, I spent a significant period of time poring within the data and figures put by the BLS (Bls) and numerous other sources to understand everything. One factor which concerns use is that we’re within an election year and frequently the figures being released are slightly greater because of carefully placed government stimulus, subsidies, and spending in a variety of industries. There is however more into it than that, and Let me talk to a number of my concerns.
The United States retail sales this year Q3 and Q4 show an uptick of approximately 2.5% however we have to also realize that gasoline has elevated almost $.20 per gallon. Now at four dollars per gallon that’s 5%, also it is among the largest expenses of shoppers. US vehicle sales will also be up, but possibly we ought to ask why. It’s since they’re lending money again where they had not recently because of banks feeling uncomfortable using their balance sheets, Dodd-Frank and the matter that GM had shed its financing arm. What is happening with auto sales you may well ask?
Well there is a really interesting article in Automotive News within the September 10, 2012 trouble in the “Finance and Insurance section”. The content was entitled “Subprime Time – As lenders more and more agree customers with shaky credit, dealerships are establishing special finance units for everyone their demands and reap or sales,” by Amy Wilson. What is happening?
Well, they’re making automotive loans to individuals who don’t qualify, or can barely qualify. But is not this the way we had become into challenge with the subprime mortgage fiasco, or what’s happening at this time with student education loans for school?
They are just semi-retrieved using their last bubble burst within the auto industry, therefore they would like to inflate the following bubble. When we consider the recent couple of decades within the auto industry we have seen how it has happened again and again. Quite simply yes, retail sales are up due to the auto sector, which will help push-up all of those other retail figures, but in ways all of these are false economic indicators, that will cause false assumptions. For the reason that same issue were articles discussing Honda Motor Credit, as well as Ford Motor Credit.