Americans Can't or Won't Consume: What it means to Chrysler and Many Others

By Bill Glynn

We are now seeing what I have been ranting about for a year. American consumption is the basis for our economy and a sustained recovery. This isn't going to happen soon enough and the economic affairs of this nation won't be back on track for up to a decade – if we don't corner ourselves into bankruptcy first. If you want an example, watch Chrysler and the rest of the automakers. They can't sell cars, damn it! How many times do we have to sit back and watch this? No one is buying cars and shutting down deal relationships that have 44,000 cars on the lots isn't going to help and certainly will crater a whole segment of the industry. This will for sure happen across almost every industry. Look at retail as well. If you want bell weathers for the economy, look no further. Home sales, credit card usage, investments, retail, auto – name it and it's all hurt badly. Why? We are a consumption economy. Until we get that right and everyone comes to grips with this fact, we will not get the real read on the damage now and to come. [more...]