Quote:
Originally Posted by Irace86.2.0
I get that it was your graph, but he drew the same conclusion.
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".
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Don't assume everyone is just going to return to work. This has more or less crashed my industry. Many have already filed for bankruptcy. We are established enough to survive but it is changing our company in a way that will last for a long time.
The 2008 recession was a boom for us.