Quote:
Originally Posted by tony404
|
Could be a bad holiday season for retailers.
I also would not want to be a car dealer right now. Word from people I know in that business is not only are sales off due to fear of the economy. Even segments that were doing well, such as econoboxs, are now in trouble.
People want to trade in their gas guzzlers, but that market is already flooded and you cant give away something like a full sized truck or SUV. Now on top of that you have the credit issues.
Loans are not being approved with negative equity rolled into them even for someone with good credit. There's no guarantee you'll get approved even with a credit score over 700 unless you put a little something down. The banks are protecting themselves against a loss in case they have to repo. Loans are totally defensive right now, very little speculation as they try to hold their head above water.