Friday, September 02, 2005


The "recovery" in pictures
The only "strong" chart was vehicle sales but then again GM lost over a thousand on every car they sold. Nonetheless, some have suggested that the Chicago PMI is just slowing down because of those sales and inventory will have to be built back up again.

I disagree. Take a good hard look at those sales. I think we had a blowoff top, that GM is producing vehicles that no one will want, especially with rising gas prices. More to the point, pure exhaustion will likely set in. If you disagree with that latter statement, please take a look at that chart and tell me what possible pent up demand for autos there can possibly be, except perhaps to dump SUVs for something more gas efficient. Unfortunately, GM is gearing up to produce more SUVs.