U
What happened to all of the doom and gloom economic threads?
- Thread starter Ulaven_Demorte
- Start date
- Status
koalabear
~Armed and Fuzzy~
- Joined
- Mar 14, 2001
- Posts
- 101,964
RobDownSouth
BoycotDivestSanctio
- Joined
- Apr 13, 2002
- Posts
- 78,543
Didn't read the article, did you? No shortage of doctors, per se, just a temporary shortage of primary care doctors, because it's more lucrative to become a gastroenterologist or cardiologist right now.
Yippee skippee.
The slack can be taken up by nurse practitioners and physicians assistants. the Magic of the Market.
Don't worry, Vetty, there will always be someone available to treat your sniffles.
U
unregistered
Guest
U
unregistered
Guest
Last edited by a moderator:
Busybody
We are ALL BUSYBODY!
- Joined
- Jan 23, 2011
- Posts
- 55,323
as shown by
Warren RAISE MY FUCKING TAXES Buffet who owes the IRS $1 billion for 10 yrs and doesn't pay
Busybody
We are ALL BUSYBODY!
- Joined
- Jan 23, 2011
- Posts
- 55,323
Mainstream Media Finally Reports On GM's Channel Stuffing Scandal
Tyler Durden's pictureSubmitted by Tyler Durden on 12/05/2012 08:13 -0500
Channel StuffingChryslerDetroitFordGeneral MotorsMarket ShareRealityToyota
Yet another story we have been following for nearly two years (and here) has finally migrated over to the Mainstream Media as attempts to hush it down before it become painfully obvious and problematic, have failed miserably. The WSJ writes that "Detroit auto makers are piling up big stocks of passenger cars at dealers despite brisk new-vehicle sales in the U.S.—a problem that executives vowed to avoid since their painful downturn three years ago."
WSJ continues:
General Motors Co. GM -0.39% ended November with enough Malibu sedans and Camaro sports cars to last more than five months at the current rate of sales. Ford Motor Co. F -0.88% had more than four months' worth of Fiesta subcompacts and Chrysler Group LLC had a nearly six month stock of its 2013 Dodge Dart.
It's an abrupt reversal from a year ago. In 2011, U.S. auto makers' market shares, especially in compact cars, soared as gasoline prices jumped and Japanese auto makers struggled with back-to-back natural disasters. This year, production at Toyota Motor Corp. 7203.TO -0.28% and Honda Motor Co. 7267.TO -0.66% came roaring back. Both began offering deeper sales incentives, something they hadn't done for many years. That has the Detroit Three in a quandary: Do they cut production or match incentives?
"They [the Japanese auto makers] really had to get aggressive about getting their market share back and maybe that did catch some by surprise or even flat-footed," said Edmunds.com automotive analyst Michelle Krebs. Toyota and Honda "have a lot of zero-percent financing" rates.
"Look at the ads, you see a lot of zero, zero, zero," she said. Edmunds.com also estimates that 38% of Toyota-financed sales last month carried interest-free loan rates.
...
GM also miscalculated demand for its pickup trucks. The industry norm for U.S. auto makers is between 60 days and 70 days of sales in inventory. GM had 138 days worth of Chevrolet Silverados at the start of this month. In passenger cars, its Chevrolet Cruze inventory jumped to 64,390 vehicles or 96 days. One of the two plants that GM will idle this month produces the Cruze.
"We thought the economy would have been further along at this point but as we look into December and 2013, we will get a tailwind from housing which benefits not only autos but the entire economy," said GM spokesman Jim Cain. "The one thing we won't do is commit the sins of the past and lose our discipline around rental cars and incentives. Our competitors may be doing it, but we have come too far to go backward and do something that may hurt our brands."
In other words: the disconnect between reality and hope has struck once more, and sadly for the optimists and those who specialize in budgeting hockeysticks, reality wins once again.
The WSJ does add some incremental value by observing the substantial, margin collapsing rebates all carmakers are forced to provide just to get inventory out of the door:
Toyota's average incentive per vehicle rose to $2,075 in November from $1,717 in January, according to automotive tracking firm TrueCar.com. Zero percent interest rates aren't counted in TrueCar's incentives tally.
Honda, meanwhile, has increased its average incentive to $2,428 from $1,978 in February despite releasing new versions of its top selling cars in the past year. The largest incentives offered in the U.S. last month were from Japan's Nissan Motor Co., 7201.TO +0.39% whose Altima has become a top selling sedan. Its average jumped to $4,273 a vehicle last month from $2,764 in January.
That is not to say the U.S. auto makers aren't also using incentives. Ford now offers as much as $2,895 off its 2013 Focus sedan, which had only two months' of inventory to start the month. Fiat SpA's F.MI -0.51% Chrysler has offered up to $5,000 off its Ram pickups, which had 3.5 months of inventory to start the month. GM has recently offered between $2,900 and $3,500 in average incentives for its vehicles, according to Truecar.com.
In conclusion:
Producing too many cars and trucks is a problem the U.S. auto makers have wrestled with since the late 1970s. To keep their factories humming, GM, Ford and Chrysler would build vehicles and stock them at pop-up parking lots created on vacant land throughout the Detroit area. When the stocks grew onerous, they would unleash heavy incentives that eroded profitability and brand image.
Today, all three face tough decisions on cutting production or profitability as inventories have soared. Ford, for instance, finished November with 18,336 unsold Fiestas, or 124 days worth of supply, compared with 96 days in October.
The Dart, Chrysler's most important new offering of the year and its first compact sedan since 2005, began December with a 173 day supply. Sales of the Dart slipped in November compared with the previous two months.
And the punchline: all this is happening even as captive lending units, either standalone or government owned (ahem Ally, aka soon to be fully-GMAC once more) are lending money hand over fist to anything with a pulse as LTVs are back over 100% once more, and the average FiCo score of car loan borrowers is now arguably lower than where it was back in 2007.
In summary - wondering why GM is set for another inevitable bankruptcy and bail out? Here's why
Tyler Durden's pictureSubmitted by Tyler Durden on 12/05/2012 08:13 -0500
Channel StuffingChryslerDetroitFordGeneral MotorsMarket ShareRealityToyota
Yet another story we have been following for nearly two years (and here) has finally migrated over to the Mainstream Media as attempts to hush it down before it become painfully obvious and problematic, have failed miserably. The WSJ writes that "Detroit auto makers are piling up big stocks of passenger cars at dealers despite brisk new-vehicle sales in the U.S.—a problem that executives vowed to avoid since their painful downturn three years ago."
WSJ continues:
General Motors Co. GM -0.39% ended November with enough Malibu sedans and Camaro sports cars to last more than five months at the current rate of sales. Ford Motor Co. F -0.88% had more than four months' worth of Fiesta subcompacts and Chrysler Group LLC had a nearly six month stock of its 2013 Dodge Dart.
It's an abrupt reversal from a year ago. In 2011, U.S. auto makers' market shares, especially in compact cars, soared as gasoline prices jumped and Japanese auto makers struggled with back-to-back natural disasters. This year, production at Toyota Motor Corp. 7203.TO -0.28% and Honda Motor Co. 7267.TO -0.66% came roaring back. Both began offering deeper sales incentives, something they hadn't done for many years. That has the Detroit Three in a quandary: Do they cut production or match incentives?
"They [the Japanese auto makers] really had to get aggressive about getting their market share back and maybe that did catch some by surprise or even flat-footed," said Edmunds.com automotive analyst Michelle Krebs. Toyota and Honda "have a lot of zero-percent financing" rates.
"Look at the ads, you see a lot of zero, zero, zero," she said. Edmunds.com also estimates that 38% of Toyota-financed sales last month carried interest-free loan rates.
...
GM also miscalculated demand for its pickup trucks. The industry norm for U.S. auto makers is between 60 days and 70 days of sales in inventory. GM had 138 days worth of Chevrolet Silverados at the start of this month. In passenger cars, its Chevrolet Cruze inventory jumped to 64,390 vehicles or 96 days. One of the two plants that GM will idle this month produces the Cruze.
"We thought the economy would have been further along at this point but as we look into December and 2013, we will get a tailwind from housing which benefits not only autos but the entire economy," said GM spokesman Jim Cain. "The one thing we won't do is commit the sins of the past and lose our discipline around rental cars and incentives. Our competitors may be doing it, but we have come too far to go backward and do something that may hurt our brands."
In other words: the disconnect between reality and hope has struck once more, and sadly for the optimists and those who specialize in budgeting hockeysticks, reality wins once again.
The WSJ does add some incremental value by observing the substantial, margin collapsing rebates all carmakers are forced to provide just to get inventory out of the door:
Toyota's average incentive per vehicle rose to $2,075 in November from $1,717 in January, according to automotive tracking firm TrueCar.com. Zero percent interest rates aren't counted in TrueCar's incentives tally.
Honda, meanwhile, has increased its average incentive to $2,428 from $1,978 in February despite releasing new versions of its top selling cars in the past year. The largest incentives offered in the U.S. last month were from Japan's Nissan Motor Co., 7201.TO +0.39% whose Altima has become a top selling sedan. Its average jumped to $4,273 a vehicle last month from $2,764 in January.
That is not to say the U.S. auto makers aren't also using incentives. Ford now offers as much as $2,895 off its 2013 Focus sedan, which had only two months' of inventory to start the month. Fiat SpA's F.MI -0.51% Chrysler has offered up to $5,000 off its Ram pickups, which had 3.5 months of inventory to start the month. GM has recently offered between $2,900 and $3,500 in average incentives for its vehicles, according to Truecar.com.
In conclusion:
Producing too many cars and trucks is a problem the U.S. auto makers have wrestled with since the late 1970s. To keep their factories humming, GM, Ford and Chrysler would build vehicles and stock them at pop-up parking lots created on vacant land throughout the Detroit area. When the stocks grew onerous, they would unleash heavy incentives that eroded profitability and brand image.
Today, all three face tough decisions on cutting production or profitability as inventories have soared. Ford, for instance, finished November with 18,336 unsold Fiestas, or 124 days worth of supply, compared with 96 days in October.
The Dart, Chrysler's most important new offering of the year and its first compact sedan since 2005, began December with a 173 day supply. Sales of the Dart slipped in November compared with the previous two months.
And the punchline: all this is happening even as captive lending units, either standalone or government owned (ahem Ally, aka soon to be fully-GMAC once more) are lending money hand over fist to anything with a pulse as LTVs are back over 100% once more, and the average FiCo score of car loan borrowers is now arguably lower than where it was back in 2007.
In summary - wondering why GM is set for another inevitable bankruptcy and bail out? Here's why
RobDownSouth
BoycotDivestSanctio
- Joined
- Apr 13, 2002
- Posts
- 78,543
We've come a long ways since 1934. For example, the syphillis that rotted your daddy's brain has been virtually annihiliated due to the discovery of penicillin.
Now, if only we could find an antidote for the Fox News that rots YOUR brain...
hogjack
Permanent Pause
- Joined
- Jul 28, 2002
- Posts
- 35,617
President Obama's distractions slows the United States' financial debt path joining counterparts Greece, Italy and Spain.
U
unregistered
Guest
RobDownSouth
BoycotDivestSanctio
- Joined
- Apr 13, 2002
- Posts
- 78,543
We've yet to find a way to shave more pounds off your jowls so they wouldn't make that infuriating chopping sound when you talk.
And as far as a deteriorating brain is concerned, maybe you should have used that penicillin to arrest the loss of your ability to spell. Ya big dunce.
Oh shut up and take your beatdown like the man your daddy wanted, not the sissy your mama raised.
U
unregistered
Guest
JohnnySavage
Literotica Guru
- Joined
- Aug 25, 2008
- Posts
- 44,472
Leading edge economic indicators are looking pretty good.
*realizing of course this thread is more about monkey's throwing poop than economics.
*realizing of course this thread is more about monkey's throwing poop than economics.
Busybody
We are ALL BUSYBODY!
- Joined
- Jan 23, 2011
- Posts
- 55,323
richard_daily
Slut Whisperer
- Joined
- Sep 17, 2006
- Posts
- 36,898
And on the taxpayers dime, at that.
JohnnySavage
Literotica Guru
- Joined
- Aug 25, 2008
- Posts
- 44,472
show us
Oh wait
Im on IGGY
Productivity up, costs down.
Real estate prices up, inventory down.
Exports up.
mercury14
Pragmatic Metaphysician
- Joined
- Jul 8, 2009
- Posts
- 22,158
U
unregistered
Guest
Busybody
We are ALL BUSYBODY!
- Joined
- Jan 23, 2011
- Posts
- 55,323
show me
I' wait
reason I axe is
the GDP was revised UP to 2.7......and the story behind the numbers painted a dire picture
Busybody
We are ALL BUSYBODY!
- Joined
- Jan 23, 2011
- Posts
- 55,323
U
unregistered
Guest
mercury14
Pragmatic Metaphysician
- Joined
- Jul 8, 2009
- Posts
- 22,158
show me
I' wait
reason I axe is
the GDP was revised UP to 2.7......and the story behind the numbers painted a dire picture
That's a very large upward revision. Where's Vette to yell about the numbers being rigged to help re-elect Obama???
Jobless claims dropped 23,000? And Vette is MIA? Strange.
JohnnySavage
Literotica Guru
- Joined
- Aug 25, 2008
- Posts
- 44,472
show me
I' wait
reason I axe is
the GDP was revised UP to 2.7......and the story behind the numbers painted a dire picture
GDP isn't a forward-looking indicator; and, it includes government spending.
I'm talking about where the economy will be in six months.
Real estate for example - for most people, their home is their biggest asset. As the value of that asset increases, they will have a credit cushion and feel better about spending. With inventory low, prices will go up even further and with low interest rates activity in the real estate sector will increase.
- Status
Similar threads
