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Strategies & Market Trends : Paint The Table -- Ignore unavailable to you. Want to Upgrade?


To: Jorj X Mckie who wrote (4161)12/1/2001 1:40:34 PM
From: MulhollandDrive  Read Replies (2) | Respond to of 23786
 
We could be creating a situation similar to what happened in techs from the Y2K spending and telecom overbuilding, but this time throughout the economy. <<

Exactly.

Furthermore, once consumers get a taste of 0 finance, you train them to wait for the next major "incentive"....similar to the when the auto industry began with "rebates" in the late 70's. Nobody would buy a car unless there was the proper incentive. So not only are the current spate of sales at the expense of future purchases, future purchases may have to be predicated on similar earnings eroding practices. Obviously, you can't stay in business manufacturing cars when you lose $$$ on the sale of each one.... It's not inconceivable that one of the Big 3 could ultimately succumb. In the wake of ENE I don't know if we're still operating on the "too big to fail" premise any longer.