Auto Manufacturer push for new technologies but their collapse in coming years has a root from their banking and loan operations
George Shehan
Jan. 7, 2007

When Peter Hans bought his Honda in 1988 after graduating from University, he was a happy man. Today, in 2006 he does not consider buying new cars. His tale is a story that is getting repeated in many households.

By 2001 his family had accumulated three cars – two on loan from the car manufacturers and one on lease. During the 9/11-terror attack, he lost his job and could not make a few payments. The car a manufacturing company took his car from his employer’s parking lot without telling him. After that the thugs the car manufacturers hired to recover the car has mis-communicated among themselves. In the evening, in his absence these thugs came and harassed his daughter and wife. The car manufacturer’s thugs went too far and harassed the family to find out where the car was. A police complaint was lodged. The car was eventually released from the muddy lot of those who harassed his family. Guess what, he had to pay $1050 for the harassment service to his family by these thigs employed by the car company.

After that incidence, no matter what Peter does not look into owning a car on loan or lease any more. Unless you live in NY, LA or Chicago city proper, a car is your “feet”. No one should live on a borrowed feet. In the last twenty years America has transformed. People have been forced out of big corporations, as these massive enterprises did not have meaningful business models. These individuals now have their own small businesses. The small business owner needs some flexibility. Sometimes they have large sums of money sitting in bank and sometimes the receivable are late. Sometime things go dry for months. It is not always possible to have a large reserve.

The car companies do not care. The foreign car companies are actually worse. American car companies are not better either. They continuously threaten to pick up the car without notice. Many small business entrepreneurs today own their cars – no matter how old it is. They have dumped the new car dealers forever from their present and future.

The net effect is that the car manufacturers will have a dreadful time, it does not matter if they bare from Japan, America or Germany! The new car sales business will suffer like never before. People are slowly shying away from buying new cars. A pleasant surprise – they save a lot from their car insurance too as they do not have to take collision, theft etc. coverage.

Auto Manufacturer push for new technologies but their collapse in coming years has a root from their banking and loan operations
George Shehan
When Peter Hans bought his Honda in 1988 after graduating from University, he was a happy man. Today, in 2006 he does not consider buying new cars. His tale is a story that is getting repeated in many households.
READ MORE>>

The main reason for dollar’s rise in 2007-2010 - it is the purchasing power of an economy and not trade deficit that determines the strength of currency
Peter Oberois
Chinese trade surplus within six months can transform into a nightmarish massive deficit if US consumers boycott Chinese goods and services. In other words, the consumer buying power is the determining factor for any currency.
READ MORE>>

Economy is plagued by sector specific hyperinflation and massive overall deflation – effects on stocks, bonds, commodities and gold
Sam Adelton
The true characteristics of the current economy is strange. The Economics 101 does not cover that. The economy has spots of hyperinflation. These areas are where you have to spend to survive and live a decent life.
READ MORE>>

MORE ARTICLES >>