Comments on: The Market Works http://www.poligazette.com/2008/05/02/the-market-works/ News and Analysis from Different Moderate Perspectives Sat, 22 Nov 2008 06:44:39 +0000 http://wordpress.org/?v=2.6.2 By: ChenZhen http://www.poligazette.com/2008/05/02/the-market-works/#comment-46197 ChenZhen Fri, 02 May 2008 17:06:52 +0000 http://poligazette.com/2008/05/02/the-market-works/#comment-46197 I work at a dealership, and I'm amazed at the change in the market in just the last 6 months.  We can't give these trucks and SUV's away, and the cars that many people would have previously laughed and pointed at (like a Chevy Aveo) are now holding their values and flying off the lot.  People are doing the math at this point, and the cost of ownership of these V8 trucks is getting outta hand.  The problem for those who already own one is that the market is so soft on them that they won't get squat for it on a trade-in, so you'll see more and more people flipped upside down on their payments, perhaps to the point that they can't get out of it even if they wanted to.   It's rough out there, let me tell ya.   I work at a dealership, and I’m amazed at the change in the market in just the last 6 months.  We can’t give these trucks and SUV’s away, and the cars that many people would have previously laughed and pointed at (like a Chevy Aveo) are now holding their values and flying off the lot.  People are doing the math at this point, and the cost of ownership of these V8 trucks is getting outta hand.  The problem for those who already own one is that the market is so soft on them that they won’t get squat for it on a trade-in, so you’ll see more and more people flipped upside down on their payments, perhaps to the point that they can’t get out of it even if they wanted to.   It’s rough out there, let me tell ya.  

]]> By: Kevin H http://www.poligazette.com/2008/05/02/the-market-works/#comment-46196 Kevin H Fri, 02 May 2008 17:02:19 +0000 http://poligazette.com/2008/05/02/the-market-works/#comment-46196 Although Toyota and Honda are truely international companies, they are strong evidence that smart government regulation can be good for business. Japanese fuel efficiency standards have seen significant regulation in the 80's and 90's, leading to a fleet of very efficient Japanese cars that are in high demand. Markets are extremely good at reacting to situations, but not so good at preparing for situations in advance. The roll of smart government should be always forward looking, trying to deal with problem 10 or 20 years down the road before they turn in to a problem for the market to fix. Although Toyota and Honda are truely international companies, they are strong evidence that smart government regulation can be good for business. Japanese fuel efficiency standards have seen significant regulation in the 80’s and 90’s, leading to a fleet of very efficient Japanese cars that are in high demand.

Markets are extremely good at reacting to situations, but not so good at preparing for situations in advance. The roll of smart government should be always forward looking, trying to deal with problem 10 or 20 years down the road before they turn in to a problem for the market to fix.

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