A rose will bloom,
it then will fade
So does a youth.
So does the fairest maid. - Nino Rota
Thursday, December 4, 2008
Geared Up, but Going Down
The world wide auto industry has the capacity to produce 100 million vehicles per year. In 2008, the auto industry just might sell 50 million vehicles. This conundrum, known as "over-capacity" cannot be cured by government bailout. Period, end of story.
The auto industry, in fact EVERY industry, has geared up for growth that never showed up. Said growth will never show up again for autos. The bloom is off this rose, and it ain't never coming back.
There will be many, many, many hearings on Capitol Hill in the coming years. All of it hot air, and nothing more than a distraction.
Mentatt (at) yahoo (d0t) com
Posted by The Short Story Man at 9:48 AM