|
|
Post by PamIsMe on Dec 23, 2014 18:00:52 GMT -6
The DOW and S&P have hit record high's. The U.S. economy grew at an incredible 5% in third quarter. It was the strongest quarter of growth since 2003. The unemployment rate is down, gas prices are down and the ACHA is on track to meet it's enrollment goals in 2015. The President's overall approval ratings are going back up.
Terrible shape we're in......for the conservatives anyway lol
Merry Christmas,
Pam
|
|
|
|
Post by bblwi on Dec 23, 2014 18:19:14 GMT -6
We are really growing even here in Eastern WI. UE is about 5.2% now around here and with the market doing well things are improving. Again as in a service oriented economy it is consumer spending that is driving the growth. Huge increases in major purchases like autos etc. and that bodes well for the economy. With the dollar being strong right now it will foster a lot of US travel to other nations as costs will be lower, but not so much travel to here. Lower, fuel, food and fiber costs will always drive a consumer based economy that believes in spending versus saving. A strong economy with low UE during a "liberal" administration may bode better for moderates and centrists in the next elections. Low UE won't hurt action on the immigration issue either as labor costs will rise.
Bryce
|
|
|
|
Post by trappincoyotes39 on Dec 23, 2014 19:59:05 GMT -6
Wonder how much of that UE is due to Christmas time?
Big increases in autos is thanks to 84 month loans many are doing now! crazy to think one will pay over 7 years just to pay off a vehicle. if auto prices don't get under control they can do nothing but tail off except for vehicles under 28,000-30,000. Pickups cost 44,000-60,000 is just plain crazy. Wages do not add up to that being in a realistic budget for someone not making money off of such or using it as depreciation.
Figure 7 years on a truck with insurance and avg 2,000 per year in fuel cost and wear and tear. hard to fathom these things will keep selling at the pace they are, unless steep discounts even 0 percent won't trigger much when one starts to look at 7-8 years worth of payments, plus fuel and insurance and wear and tear cost.
|
|
|
|
Post by bblwi on Dec 23, 2014 22:01:15 GMT -6
There were 6-7 year loans a decade ago. During the housing ramp up those leasing autos rose dramatically as they did not show up as debt and that allowed even greater investments in sub prime mortgages that allowed home owners to buy homes twice their repayment capacity if not more. So long term auto loans is not the new thing driving the new economic growth. Consumer confidence is. As to Christmas hiring, sure that is always a bump in seasonal but let's see where we are in March compared to last March when we typically suffer the post Christmas economic woes. Travel agencies are seeing increased bookings for cruises and snowbird trips which shows that consumers are optimistic about the short term future at a minimum.
Bryce
|
|
|
|
Post by trappincoyotes39 on Dec 24, 2014 5:55:20 GMT -6
Bryce no 7 year loans on new vehicles a decade ago. These started when the recession came about and very darn few where doing such even then 2011/2012 started more and more dealers looking into and pushing more 7 year loans on new vehicles. The monthly payment s keep rising and to fit that into some budgets the 7 year loan is now advertised much more than even 2 years ago.
Good read on this subject.
Bill Ford, chairman of the namesake car company, said the increase in seven-year auto loans is worrisome.
In a CNBC interview today, he said, "I think we have to be careful because we don't want to get into a situation like we did before, where consumers are over-extended. That doesn't do anybody any good."
His warning comes at a time when Experian Automotive data show that 24.9% of all new-car loans were for 73 to 84 months the first quarter, up from just 10% four-year ago. The average length of a new car loan now is a record 66 months, Experian reports.
Longer loans can keep monthly payments lower. The auto industry's oft-repeated sales mantra is, "Everybody's a payment buyer," paying less attention to the overall cost of the loan and focusing on whether the payments fit their budgets.
Long loans can erode future new-car sales because it takes longer for the vehicle to be worth more than the remaining loan balance. If the owner wants to trade-in the vehicle when the balance is higher than the value of the car, the owner is "underwater" and has to add the difference onto the loan for the new car.
Or simply wait longer to buy a new car, which wrecks auto sales.
Longer loans only are possible because the tight lending standards adopted during the recession are easing now, so more buyers with lower credit scores qualify for bigger and longer loans.
"We've been relatively conservative at Ford about those types of things," Bill Ford told CNBC.
Sales of new cars and trucks this year through August are up 5.1%, according to Autodata. The annualized selling pace in August was a staggeringly high 17.53 million, up from 15.94 million a year earlier.
|
|
|
|
Post by trappnman on Dec 24, 2014 7:26:36 GMT -6
TC- ever hear that saying about hanging and a new rope...
come on- economy is in best shape in almost a decade, less UE, more jobs, dollar doing good (and hey, since you were blaming Obama for high gas prices- thanks Mr Pres for our low prices), HC is working- life is good
|
|
