Quote:
Originally Posted by Tcoat
The problem this time is it is all automotive worldwide. The downturn in 2008 was rough on the industry and it was a minor blip compared to this.
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Quote:
Originally Posted by Spuds
To be fair, I used the metric as a visual representation of how this is different than the 2008 recession, not Tcoat. Perhaps I illustrated his point ineffectually, but I trust his observations and conclusions over armchair generalizations by someone who is not in the automotive production industry.
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I get that it was your graph, but he drew the same conclusion.
Quote:
Originally Posted by Tcoat
Investors and stock market are NOT the auto industry.
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The short term changes in cash flow should be managed with stimulus, loans and savings. Obviously, there are less people and dealerships buying cars right now, but that shouldn't persist because people will return to work. There could be a sling-shot effect with a dip in purchases then a boost/surge in purchases. It all depends on how everything goes.
I think the big difference between 2008 is that there were massive number of home foreclosures that wiped out people's savings, uprooted them from their homes, altered the market, resulted in long term job loses, etc. Those foreclosures killed the cash flow of the banks, which fundamentally changed their ability to lend and bla bla bla. The long term purchasing power of the market was deeply impacted. I just disagree that the 2008 recession was "a little blip compared to this".