Distress Rising.....People begging for loans and so are dealers
“‘We are seeing people that have challenged credit … (or) foreclosures pending’ said Bob Kleis, general manager of Jimmy Vasser Chevrolet-Toyota. ‘We are seeing more cars for sale in repossession wholesale auctions.’”
“‘The mess in the home industry has trickled down into the car industry,’ said Napa Nissan owner Vince Compagno.”
“At Napa Ford, Massie said, ‘We have customers that want to get vehicles but are in the process of losing a home.’ The number of buyers in distress ‘is much greater than this time a year ago.’”
“Why would someone in financial trouble buy a car? Even if people are moving or giving up on home ownership, he said, ‘They still need reliable transportation to get to work, school and church.’”
No wonder GM is cutting credit off from its dealers:
The credit crunch squeezing Detroit's Big Three auto makers is now spreading to some of their dealers, adding financial pressure to a group already strained by this year's big drop in auto sales.
The latest and most prominent example is Bill Heard Enterprises Inc., one of the largest Chevrolet dealers in the country, with 2007 sales of $2.1 billion. Earlier this month GMAC LLC, the financing company partly owned by General Motors Corp., stopped doing business with Bill Heard over concerns about financial losses related to the privately owned chain of 14 stores, Bill Heard confirmed through a spokesman.
Let's see how much money America can pour into its stock market as earnings evaporate and debt is destroyed.....can you imagine what retirement accounts and pensions are going to look like when value reflects earnings??????
On the IT spending side, if the States are shutting down the court systems and laying off workers to save money.....you think they are buying computers???
As America continues to default and shuts down.....expect the distress to keep rising.