Wednesday, January 02, 2008

Starting the New Year Right

Gold at record prices (not adjusted for inflation).
The dollar at near-record lows.
Oil at record prices (adjusted for inflation).

Wow. All that money spent on alcohol didn't help the economy one bit.

No one wants to talk about this, which explains a lot of the rest. Can you fix a problem by ignoring its root cause?
...the trend is unsettling. The two largest subprime lenders for automobiles, Consumer Portfolio Services and Americeredit have seen their share prices drop by about half in the past several months. And consumer debt in general has been ringing alarm bells at the Federal Reserve and in the halls of Congress. Tightening credit for cars is the last thing the auto industry wants to see. Luxury cars are fat for profit. Extending loan terms has allowed automakers to seduce consumers into vehicles they can't afford. In 2008, the problem may come home to roost.
Emphasis is mine.

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