On 3 May, 09:24, Chemical Ali <kink...@[EMAIL PROTECTED]
> wrote:
> You know things are getting worse during Bush's recession when the
> nation's semi-upper-crust puts off buying their Lexus and Mercedes
> luxury cars.
>
> It seems The RECESSION is not just for we "little people" anymore.
>
> -----------------------
> "BUSINESS BRIEFING"
>
> AUTOMOTIVE
>
> Lexus, Mercedes Sales Fall in U.S.
>
> U.S. sales of luxury auto brands including Toyota Motor's Lexus and
> Daimler's Mercedes-Benz fell in April, adding to evidence that the
> economic slowdown is causing even wealthy buyers to curb spending.
>
> Sales by automakers' luxury divisions -- broadly defined by analysts
> as those selling autos for $40,000 aimed at the most-affluent
> consumers -- dropped 13 percent from a year earlier, according to
> Autodata. That outpaced the 8.9 percent decline in sales of all
> vehicles.
>
> The results reflect the run-up in gasoline prices, dropping real
> estate values and tighter credit that forecasters said may halt
> economic growth by midyear. Sagging stock markets and shrinking
> bonuses may also be weighing on premium-brand buyers, Autodata said.
>
> http://www.wa****ngtonpost.com/wp-dyn/content/article/2008/05/02/AR200...
This is an example of deflation. Credit has been restricted. The
people who would have borrowed thousands of dollars to buy a new motor
car can not get finance. So sales of motor cars are down.
People who were relying on credit for day to day expenses can have big
problems when credit is restricted. Often they are forced to sell
assets to meet living expenses. When many people want to sell and few
have the means to buy prices fall. Cash becomes king.
|
