Recently my husband and I took time out of a housing search to sit down and discuss our options over a hot cup of coffee at Starbucks. A gentleman at the table next to ours overheard our discussion and jumped in animatedly giving us the holy grail of housing advice. Here are his thoughts regarding the economy: 1) We haven't hit bottom yet. We're in the middle of the second of a three dip recession.
2) Any one who thinks we're out of the woods is just trying to hide the truth we're in for a long haul.
3) We're not going to see any way out until the amount of foreclosed houses on the market dry up. Only then will our economy begin to show signs of life.
What does any of this have to do with the auto industry?
Following on the heels of this discussion is an article from Automotive News that May auto sales slid 4 percent, the highest decline since last August. Thoughts raging around the blogosphere attribute the slump to high gas prices and the Japan disaster, but I can't help but wonder if our Starbucks guru is right. Are we just in the second phase of a three dip recession?
And before you discount some "guy" in Starbucks, I did some research. Turns out he is a premier developer in the area, manages a fund and made his fortune predicting financial up and downs. When the gas prices come back within normal range will our industry right itself or does it go deeper than the price at the pump? Can we, as an industry, do anything to right this ship?
No comments:
Post a Comment