The market is experiencing what the housing and financial institutions are suffering, i.e. the house of cards will start crumbling due to margin calls. Speculators, especially hedge funds will have to sell shares to satisfy margin requirements, just like LTCM which was managed by Nobel Prize recipients. The downward spiral will accelerate if the government does not step in. This country will not only enter the recession cycle, but a reminder of the 1929 depression looms large.
Some ages ago, the car industry helped the economy to recover, and hence the saying what's good for GM is good for the country. People had to buy new cars since the old ones had limited life. However, GM is not the king of the auto industry anymore, and cars last longer, and foreign cars are preferred for their quality and reliability. GM, F and Chrysler are suffering, and especially Chrysler under the helm of Robert Nardelli, a failure CEO when he was at Home Depot, and now his policy is encouraging people still to drive gas guzzling cars with 3 year guarantee of $ 2.99 gasoline. What a gimmick!
Hybrid does not make economic sense since you have to pay about $ 5,000 than regular car. How many years before you reach a breakeven point? And when the car is out of warranty, you have to spend another $ 5,000 to replace the battery plus other problems that are related being a hybrid. Of course when you drive a Prius, you are happy seeing your gas mileage doubles than the regular car. Then, when you try to sell it as a used car, the buyer would want to know if the battery has been replaced. There you go, another reduction in the selling price of a used car.
You can have arguments back and forth about the greening of the country. Yes, Tom Hanks has two Priuses, so are Brad Pitt and Angelina Jollie. They can afford that, money is no object. Besides, it is good publicity. But that is make economic sense for the average people? You do the math.
Les than 7 months to go before the new president is sworn in. But if the neocons have crashed the truck down the cliff, there are not many ways you can recover. It will take several generation to repair the damage.
Bush does not care anymore. During a meeting with the President of Philippine at the White House, Bush remarked how wonderful it was that he had dinner prepared by a cook from her country. What kind of diplomacy was that? If an ex sailor, you know that that means. |
