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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Ramsey Su who wrote (1424)10/12/2003 12:42:35 PM
From: Silver Super Bull  Read Replies (1) of 110194
 
RS,

RE: "Ever since 9-11, the industry is addicted to these incentives, especially zero percent financing. No one now dares to return to the old days for fear of losing market share."

GM and Ford are particularly addicted. What is troublesome, in my opinion, with regard to GM is:

-I think the 0%/low financing was originally thought to be a temporary "fix" to a variety of problems. Now it doesn't look temporary...and I'm not sure it is a "fix" either. Indeed it may be a curse.

-GM originally gained market share after implementing the cheapie financing. Then I heard they started losing market share again. So it is unclear what effect this is having...if they are losing market share while deep discounting that is a serious issue IMHO.

DB
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