The recession continues through August but with an interesting twist. There are three major movements in the economy to look for that will impact August tremendously, these could be huge or could have relatively no impact, its 50/50 at this point.
The first change that is occurring as we speak is the auto industry, which has definitely taken a beating might have found a break. The new Cash for Clunkers stimulus rebate is working and it is working better than any other stimulus. The program also know as CARS is boosting sales like no other promotion ever has. The program was supposed to run for about 2 months but has dried the stimulus funds allocated for it in less than two weeks. The amount of buyers has tripled since the program launched. Me and a family member recently visited a Honda and Toyota dealer and couldn’t get help, we hear sales people telling us they have sold over 120 cars in less than a week. This is fantastic and driving consumer spending, how the government will support the demand if it continues is unknown but likely as for once, something is working and should continue to boost car sales of all makes and models. This is definitely something to continue watching.
