Sept. 16 (Bloomberg) — Chrysler Group LLC, the U.S. automaker run by Fiat SpA, said nationwide industry sales are off 19 percent so far this month after a government purchase- incentive program ended.
“We are going to see harsh reality in September,” Sergio Marchionne, the chief executive officer of Fiat and Chrysler, said at the Frankfurt Motor Show. He described the U.S. industry results as a “disaster.” Fritz Henderson, CEO of General Motors Co., said the market is “very weak” this month.
But but but I thought all those "cash for clunkers" buyers were people who wouldn’t have bought a car otherwise?
Looks like that was a load of BS out of the administration…. just like all the other so-called "stimulus" programs.
Just another example of pulling forward demand, which works exactly once per application, but then leaves a gaping, sucking hole where demand would have been in the subsequent months.
PS: Expect them to try some sort of BS similar with the expiring "Home Clunker" $8,000 rebate program that is ending in a couple of months. The two problems with it are the same as the problems here – the consumer is tapped out and can’t afford to buy (witness the FHA default rates in excess of 20%!) and those who DO buy anyway find themselves in a financial position they cannot really afford and didn’t think through.
In addition you further drain the demand pool and thus when the "stimulus" ends (and all must eventually end) you find yourself with no real buyers left!
All this faux "demand" being generated by the so-called "stimulus" is just doing more damage to the economy – damage that is accruing and will come to the surface with devastating effect.
Global markets erased another $69.2 billion from the combined net worth of the worlds 400 richest people Monday, bringing the total since the U.K. shocked investors with a vote to leave the European Union to $196.2 billion in the last two trading days.
Friday's global selloff continued today as the S&P 500 plunged at open and continued through the morning. The sell-off recovered slightly over the following hours, but hit its -2.24% intraday low in the final hour. The index continues in the red at -2.12% year-to-date.
The flight to treasuries continued today. The 10-year note closed at 1.46%, down 11 basis points from the previous session.
Here is a snapshot of past five sessions in the S&P 500.
Here is a daily chart of the index, which has dropped below its 50-day moving average. Volume, as we mentioned above, increased dramatically.
Here's a look at the VIX volatility index, the celebrated "fear gauge" market indicator. Today's selloff continued well...
By Jacob Wolinsky. Originally published at ValueWalk.
UKIP LEADER NIGEL FARAGE TELLS FOX NEWS CHANNEL THAT RUSSIAN PRESIDENT “VLADIMIR PUTIN BEHAVED IN A MORE STATESMAN-LIKE MANNER THAN PRESIDENT OBAMA DID IN THIS REFERENDUM CAMPAIGN”
In an interview on FOX News Channel’s Your World with Neil Cavuto this afternoon, the United Kingdom’s Independent Party (UKIP) leader Nigel Farage discussed the United Kingdom (UK) voting to leave the European Union, the international market reaction to the vote and the UK’s credit rating downgrade with guest host Trish Regan. Please see below for highlights.
Nigel Farage On comparing President Barack Obama’s response to the Brexit vote to Russian President Vladimir Putin’s:
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Long before last weeks Brexit vote, Germany’s DAX index has been an upside and downside global stock market leader, over the past few years. Below looks at the pattern the DAX has created over the past decade.
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Since mid 2009 the DAX has remained inside of rising channel (A). The top of this channel was hit in April of 2015. Since hitting rising channel resistance, the DAX has ...
I have mixed feelings about Brexit today. Clearly the European institution need reforming. The addition of so many countries in the last 20 years has created a top heavy administration. The Euro adds more complexities to the equation as the ECB policies cannot fit every country's problem. On the other hand, a unified Europe has advantages as well – some countries have benefited from the integration.
For Britain, it's hard to say what the final price will be. My guess is that Scotland might now vote for independence as they supported staying in Europe overwhelmingly. Northern Ireland might be tempted to leave as well so possibly RIP UK in the long run. I was talking to some French people and they were saying that now there might be no incentive for France to stop immigrants from crossing over to the UK like they do now and simply allow for travel there and let the UK deal with them. The end game is not clear to anyone at the moment....
One week ago, when bitcoin first crossed above $700 on the seemingly insatiable Chinese buying which we forecast last September (when bitcoin was trading at $230) would take place as a result of China's capital controls (to much pushback by the "mainstream" financial media), we tried to predict what may happen next. We said that "it could go much higher. That said, anyone who bought last September when the digital currency was trading at $230 may be advised to take some profits, and at least make...
After a three-year bull run that more than quadrupled its value by its peak last July, IBD’s Medical-Biomed/Biotech Industry Group plunged 50% by early February, hurt by backlashes against high drug prices and mergers that seek to lower corporate taxes.
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Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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