The Worlds Unsold Cars

[Taco]

New cars are piling up faster than dead men at a feminist convention. More proof the world economy is on its ass.

The Worlds Unsold Cars
http://www.zerohedge.com/news/2014-05-1 ... ars-go-die

[Jester]

Great article.

Thanks for posting.

I had no idea.

I heard of this happening already around 1999, with Freightliner, the biggest truck manufacturer, stockpiling trucks in secret locations. Us salesmen found it hard to believe, didnt seem to make sense.

Having been in real estate now, I understand it. Its an accounting issue. Unsold trucks are carried on the books at manufacturing cost. If they could sell them all off to martians at cost, they would. But if a discount is needed below cost, the books will show that as a loss, cutting executive compensation. So the answer is to leave them and let them rot. Probably there should be an accounting rule to force writedowns of unsold inventory, I don't know.

Seems like a great place to steal from, the one in St Petersburg maybe.

BTW this is what happened in commercial real estate in the US. A landlord never want to lower the rents to market to fill vacant stores and offices, because his projected income would drop on all units, and the value of the building would drop, and the bank would call his loan. Better to hang on to a see-through building, and cross your fingers. The economy MIGHT improve. This is one of the reasons for "urban blight".

In the case of residential property (houses), the mechanism is different but the result is similar. Banks who repo houses carry them on the books if they have to, to avoid selling them at a loss. Also sometimes they postpone foreclosure, not to be nice, but to wait till they can handle the additional inventory.

Overall, because of the OP, I am now convinced the world economy has farther to fall, at least in the Anglosphere and China as well. Sad.

[Moretorque]

If we had a free and truly open economy that operated on real trade this would not have happened, the social engineers who create unlimited purchasing tickets which has totally driven the world economy in a unnatural order is coming home to roost big time.

The end result is going to be one hell of a culling of the earths population is my prediction.

America should have collapsed long ago and the eco system here could have a chance to recover once this happens but in the process it will take many of us with it.

[Moretorque]

Great article.

Thanks for posting.

I had no idea.

I heard of this happening already around 1999, with Freightliner, the biggest truck manufacturer, stockpiling trucks in secret locations. Us salesmen found it hard to believe, didnt seem to make sense.

Having been in real estate now, I understand it. Its an accounting issue. Unsold trucks are carried on the books at manufacturing cost. If they could sell them all off to martians at cost, they would. But if a discount is needed below cost, the books will show that as a loss, cutting executive compensation. So the answer is to leave them and let them rot. Probably there should be an accounting rule to force writedowns of unsold inventory, I don't know.

Seems like a great place to steal from, the one in St Petersburg maybe.

BTW this is what happened in commercial real estate in the US. A landlord never want to lower the rents to market to fill vacant stores and offices, because his projected income would drop on all units, and the value of the building would drop, and the bank would call his loan. Better to hang on to a see-through building, and cross your fingers. The economy MIGHT improve. This is one of the reasons for "urban blight".

In the case of residential property (houses), the mechanism is different but the result is similar. Banks who repo houses carry them on the books if they have to, to avoid selling them at a loss. Also sometimes they postpone foreclosure, not to be nice, but to wait till they can handle the additional inventory.

Overall, because of the OP, I am now convinced the world economy has farther to fall, at least in the Anglosphere and China as well. Sad.

This is what happens when you do not tie your purchasing tickets ( MONEY ) to real things and trade through real agreements.

You are essentially looking at why socialism does not work, it is so wasteful. All the American auto companies went bankrupt and were bailed out but now look at what they are doing. Can you say wasteful!!!!

First thing you have to have is a stable money supply to run a stable society, we do not have that not even close. We all signed up for the socialist Ponzi con job now look at where it is going. We should be using our resources to create jobs to start repairing the eco system world wide rather than having all this wasteful socially engineered fat drag the whole world down and take all of us with it.

[Rocky Top]

Unsold Cars -Snopes

[Jester]

Unsold Cars -Snopes

Snopes usually has the dope, though they also shill for the NWO on things like chemtrails, moon landing, JFK assassination. (I am speaking generally, dont recall which specific issues.) I.e. they toe the Establishment line.

But anyway if Snopes is right here, then what about this part from the article:

Please do see this on Google Maps....type in Sheerness, United Kingdom. Look to the west coast, below River Thames next to River Medway. Left of A249, Brielle Way.

Timestamp: Friday, May 16th, 2014.

I don't know anything about timestamps, or about how to drill down and see local stuff on google. Maybe one of you guys does?

Was the part of the article I just quoted total baloney? Or is it right?

I am referring to the timestamp, and to the satellite view.

If it was deception, sure fooled me. I figured a satellite view from google must mean its authentic.

[Moretorque]

Right now they are pushing new cars on everybody who has a descent credit score, even my local bank sent me a card in the mail for a new car for 2 or 3% interest over like 5 years. I believe cars are being stockpiled up.

[Moretorque]

Right now they are pushing new cars on everybody who has a descent credit score, even my local bank sent me a card in the mail for a new car for 2 or 3% interest over like 5 years. I believe cars are being stockpiled up.

[droid]

How about this?
http://jalopnik.com/that-zero-hedge-art ... 1578124255

[momopi]

BTW this is what happened in commercial real estate in the US. A landlord never want to lower the rents to market to fill vacant stores and offices, because his projected income would drop on all units, and the value of the building would drop, and the bank would call his loan. Better to hang on to a see-through building, and cross your fingers. The economy MIGHT improve. This is one of the reasons for "urban blight".
In the case of residential property (houses), the mechanism is different but the result is similar. Banks who repo houses carry them on the books if they have to, to avoid selling them at a loss. Also sometimes they postpone foreclosure, not to be nice, but to wait till they can handle the additional inventory.

A few years ago, I bought an investment property where the owner had stopped payment on the house for couple of years, and the bank allowed him to stay there, provided that he maintained the place. When I bought it, the bank gave him $20,000 (or was it $12,000? Forgot!) for cooperating with the sale, and moving out on time. When my agent went to the house, the guy had already moved all his stuff out except for a sleeping bag, he was quite eager to collect on the 20k.

So let's do the math:

Guy was financially irresponsible, refi his house like an ATM and took out tens of thousands of dollars. When the market dipped and he was upside down, he stopped paying the bank. The bank rewarded him by letting him stay for 2 years for free, and even paid him $20K cash incentive to maintain the place for sale.

@_@


On subject of cars, we've been flooded with factory-backed ~$199/mo lease deals here in Los Angeles.

[Jester]

How about this?
http://jalopnik.com/that-zero-hedge-art ... 1578124255

Thanks

[In2dadark]

I have to buy used & preferrably 2005 or older. Newer cars have too much wireless & electronic stuff going on & make me exhausted. I know... I'm weird. Guess it saves me a lot of dough as I tend to be happy w/ what I have long term. Used is where it's at anyway.