Discussion in 'Economy' started by Truthmatters, Aug 5, 2012.
Increase in auto sales sign of economy improving | www.journal-news.com
Well...as the saying goes - "there you go again".
Auto sales is indeed on the rise, and a long enough improvement to legitimately be able to say "auto sales are improving".
But...the proof is always just below the surface.
The reason auto sales is improving is because auto lenders have loosened credit requirements and are once again lending to the sub-prime audience. Which is not really a sign of "economic improvement" but a return to poor lending practices that got us here in the first place.
Buried in paragraph 12:
and they are know going back up.
is that bad?
show the sub prime claim
July Auto Sales Provide Cautious Optimism - US Business News - CNBC
GM (down) 6.4%
Ford (down) 4 %
Toyota (up) 26.1%
Chrysler (up ) 13%
Nissan (up ) 16.2%
Volkswagen (up) 27%
How is this not good news?
Navigating the numbers: how is the economy really doing? : Stltoday
GDP reigns as strongest indicator of growth
The big number — the total of all goods and services produced in this country — is the broadest, best indicator we have of whether the economy is growing, and how fast. The latest estimate, out last week, was 1.5 percent in the second quarter. Not quite recession territory, but still pretty weak.
That's how it has been almost every quarter since the end of 2010, and the experts don't see much improvement coming the rest of this year. Lately, gains in manufacturing, exports and consumer spending have been balanced out by lower government spending, rising imports and a slip in car sales. Indeed, the challenge for years now has been how to get the economy humming on all cylinders, instead of rising and falling by sector.
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