http://bigpicture.typepad.com/comments/
------------------

Auto sales, which were weak over the past 11 months, fell off the table last month:

• Ford Motor posted a 34% drop. Their truck and van sales fell 39%, SUV sales plummeted 57% and F-series truck sales dropped 42%.

• Honda reported a 24% decline in sales;

• Toyota U.S. Sept. sales drop 32.3%, light truck sales dropped 38%

• Lexus sales -- Toyota's luxury nameplate -- fell 37.7%;

• Volvo sales slumped 51.8%;

• Porsche tumbled 45%;

• General Motors sales down 15.6% (better than the expectations of -26%)

• Nissan Sales down 37%

• Mercedes-Benz reported sales off -16.4%

• Volkswagen sales for September fell 9.4%;

• Hyundai Motor's U.S. sales fell 25%;

• Kia U.S. sales slide 27.8%

Chrysler report September sales later today

Edmonds.com noted that the last time fewer than 1 million new vehicles were sold in a month was February 1993.

<snipped>

One thing that always confused me was the term of recession. Republicans seem to be mighty defensive about recessionary period that took place even under Bush II’s tenor, which strangely, most people don’t remember or recall.

I have always suspected that this is because “recession” refers exclusively to market conditions, when things are “bad” for Wall Street. But things have been bad for main street for some time now, ever sense Ragan got into office. Things didn’t even improve much under Clinton. Which in hind site we now know why All Gore’s campaign line “are you better now than under Bush” didn’t seem to gather much traction.

This time is different. People are losing their homes, inflation is taking off, and wages remain stagnant. They have no choice but to lean the budget in order to maintain the same standard of living. And it looks like the first victim is the new car.

Their may be other factors at work as well. The demand for gasoline is down, meaning driving is down. This translates into less vehicle wear, and in turn, less demand for new cars.

I am also curious what used car sales are doing.

I might forward the idea that no one is buying because no one is selling what the people need, hyper fuel efficient cars. But car sales are down across the board, including those who do make economy models.

Tightening credit may also have something to do with it.

..New York Telephone

The whole planet is playing a big game of "get out of debt ASAP!"

Its financial warfare in reverse - the virus that invades asia goes contagion and circles the planet back to washington and new york.

End of reserve currency status will bite like a chill wind.