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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (12340)	4/21/2004 1:42:34 PM
From: who cares?	Read Replies (1) \| Respond to of 110194

I recently read a nice article in Bloomberg Magazine about how all of Detroits profits are from their finance arms, and how they were doing mortgages because it was higher margin, lol. The thing that really stuck with me was it was more a matter of when than if, they will both be downgraded to junk status, raising their borrowing costs and crushing them, and that Toyota was also getting into the auto lending biz, but that it has A or AA credit rating. Just as a car buyer, it seems the American manufacturers are resigned to their fate. They keep bringing out the retro styled vehicles to tie to their glory days, and keep the customers they have, but is the kid that's going to go out and buy a Nissan 350Z going to now change his mind and wait for the new Mustang? It's like they're fighting a defensive action, just a matter of time before Japan kills all our leading segments, but let's drag it out as long as possible. And then there's the pension obligations, and and and I better stop or i'll be wanting to go short this Ford spike.