Auto and Home Sales, Olympics

After the ending of 'cash for clunkers,' sales dropped dramatically as predicted. GM is down 45% and Chrysler down 42%. It is doubtful that the taxpayer loans will ever be repaid. Notice Ford who did not accept government loans was down 5%, beating some of the Japanese companies. It's another example of the drawbacks of government intervention that provided only a brief injection, and added years of debt to future generations.

'Pending' home sales rose 6.4% from July, and 12.4% higher than last year. What is important is the 'closed' statistics on home sales since a third of mortgage applications are denied. Also, the impact of the $8K first time buyer tax credit ending next month will create a chasm like the auto industry is experiencing. Foreclosures continue to increase and even personal bankruptcies are at a 4 year high. Unemployment keeps going up too, against the grain of those who keep using words to reflect improvement. Be aware of the use of words like pending to make people believe that everything is moving in the recovery direction. The only truth so far is that the recession has 'officially' ended.

Regarding the quest to have the Olympics here in Chicago, I thought it was appropriate to send the first lady over there to speak for us. I thought it was totally inappropriate for the president go over after she did. It diminished her effort and made it look like she couldn't hold her own. He talked briefly and left, showing no understanding of other cultures and what they expect. He treated them as he would any business dealing in the U.S. I am glad that Rio De Janeiro was chosen. It provides South America the opportunity to be recognized and included in the world in a big way.