Tuesday, January 27, 2009

Further afield, we note that not much stuff is moving

The port of Long Beach is one of the busiest in the U.S. for imports and exports. Unfortunately it doesn't seem to be doing much business recently. Take a look at the first column, loaded inbound cargo containers.

And look here: All these cars were supposed to be shipped to dealers and sold. Instead they are piling up. I don't feel like getting $20,000-40,000 deeper in debt right now either. Do you?

2 comments:

  1. I've been saying for awhile the over supply of autos is going to cause major problems for the manufacturers. With higher interest rates and no subsidized leases, people will not be able to purchase expensive cars -- especially if their pay has gone down or they are facing a potential layoff.

    This will be a good opportunity for those with leases coming due to renegotiate the payoff amount as the manufacturers will not want cars back.

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  2. Excellent point, anon. I hadn't considered that much of the high-end is leased. If your credit is excellent or if you have cash, it's a good time to drive a hard bargain. There is a ton of overcapacity in finished product and manufacturing capacity at this point in time.

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