Housing and Auto Sectors Face Stimulus Problems…
According to a recent article published on CNN.com, analysts have cautioned over zealous U.S. stock investors that the recent rise in car sales may only be the result of a short-lived boost from government stimulus programs- one of which ends on the 24th of August and the other at the end of November. The article goes on to quote William O’Donnel, an analyst at RBS who had this to say about the stimulus:
The recent strength in home and car sales got a large boost from the transitory stimulus programs, and we worry that sales have been brought forward….If Peter has in fact stolen from Paul, then some benchmark economic releases could look soggier as we hurtle toward year-end.
The recent up and downs of the stock market on a day-to-day basis in conjunction with the recent economic woes is enough to drive any one person crazy. That being said, many are wondering what will happen to the auto industry as we all sit back and wait for something magical to happen. It seems that the unspoken question is “What if this recession never ends?”





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