Auto Sales Tumble

[Ron61]

And things just get worse!

February auto sales tumble, Detroit hit hardest - Yahoo! News

Ron

[Wayne Maybury]

Politicians and economists insist that the US is not in a recession based on the definition of a recession but that will change as the economic results roll in month by month. The big problem this time is that there will be much less pent up demand compared to other recessions.

Typically, consumers cut back spending going into a recession so there is a significant amount of pent up demand for products that have not been purchased before and during the recessionary period. However, this time many consumers were over spending going into the economic downturn buying everything in sight but as we know, most spending was on credit. Since consumers have been buying, there is little need to purchase goods that would normally exist. This means that it is going to be difficult to get out of this recession, expecially since many people are up to their ears in debt and not really able to make new purchases.

Wayne

[Ron61]

Wayne,

I doubt if the politicians in Washington are in a recession. But around here it is getting very bad with businesses closing at the rate of about two or three a week. And we just don't have much work in this area to start with. Even the Real Estate businesses are cutting back and the number of houses I see with signs in front of them seem to grow daily. This is hurting everyone around here.

Ron