Whats going to happen to the stock of new cars @ Rick Damelian Dealership in Sydney

[Irving]

The drop in prices can be attributed to cutting supplier and dealer margins, Automation in manufacturing and general streamlining of processes. Basically, cost cutting coupled with a stronger A$. Also a sign of the times....

The Aussie economy is coming under pressure with the ASX down more than 20% firmly in Bear Market territory, awaiting a likely EU breakup which would put an end to the Euro (currency). Contrary to what the mainstream media tells you, the world economy is on the precipice. The Aussie property market with the median house costing around 8.1 the annual average income making Aussie property prices among the most expensive in the world and firmly in bubble land will most likely pop.
And then there is China, a bigger bubble which will have a major flow on effect for the Aussie economy.
The DAX (German stock market) recently hit a low of 5000, down from 7500 (-33%)
The CAC (French stock market is down from a high of 4150 to 2950 (- 29%)
Greece, Itally, Spain, Ireland and Portugal (PIIGS) are basket cases.
The USA is more the $14 Trillion in debt with it’s citizens loosing their homes, no jobs and having their cars repo’d . 45 million of it’s citizens are living off food stamps. The situation is desperate for the average person, with Wall Street and the Bansters getting bailouts.
And China who is supposed to save the rest of the world won’t be able to save itself...

House, car and other assets are going to get a lot cheaper. imho

[Fredoops]

The drop in prices can be attributed to cutting supplier and dealer margins, Automation in manufacturing and general streamlining of processes. Basically, cost cutting coupled with a stronger A$. Also a sign of the times....

The Aussie economy is coming under pressure with the ASX down more than 20% firmly in Bear Market territory, awaiting a likely EU breakup which would put an end to the Euro (currency). Contrary to what the mainstream media tells you, the world economy is on the precipice. The Aussie property market with the median house costing around 8.1 the annual average income making Aussie property prices among the most expensive in the world and firmly in bubble land will most likely pop.
And then there is China, a bigger bubble which will have a major flow on effect for the Aussie economy.
The DAX (German stock market) recently hit a low of 5000, down from 7500 (-33%)
The CAC (French stock market is down from a high of 4150 to 2950 (- 29%)
Greece, Itally, Spain, Ireland and Portugal (PIIGS) are basket cases.
The USA is more the $14 Trillion in debt with it’s citizens loosing their homes, no jobs and having their cars repo’d . 45 million of it’s citizens are living off food stamps. The situation is desperate for the average person, with Wall Street and the Bansters getting bailouts.
And China who is supposed to save the rest of the world won’t be able to save itself...

House, car and other assets are going to get a lot cheaper. imho

Of course there will be a double dip, real asset prices didnt fall in the last recession (par the American housing market).

The thing about car prices etc, I don't know how te price would fall considering the raw material prices would likely to maintain stable (or at least not fall at the same rate as other prices, because miners etc will just reduce production, OPEC style).

IMO euro is still one of the best thing happened to Europe in concept. It's just there are some dodgy operators like Greece, "one rat ruined an entire bowl of soup" so to speak. What the ECB should do is kick greece outta euro currency,isolate the loss within Greece itself. And get on with fixing span and Italy, where the taxation system sort of works.

[Irving]

Bailouts for all - Lol would be the simple solution. However, Merkel has her hands full with the German Voters voting against her party with even the Pirate party getting more votes at a recent by-election....lol

Greece fudged it’s books in order to get into the EU. If Greece defaults on it’s debt (bonds) a couple of French banks stand to loose 100s of Billions of Euros. Hence, Sarkozy’s efforts to get the Germans to continue spearheading the bailouts.

The Greek stock market was down some 85% the last time I checked. If Greece fails, there is a very good possibility of Contagion to Italy and other EU countries including Austria, Poland etc. Spain, Italy and Portugal are in real trouble atm. My opinion is that the Euro will fail, with member nations reverting back to their own currencies. As for the EU, it’s a very difficult call to make...

House prices have crashed in most developed countries with the exception of Canada and Australia (these are now coming under pressure). China’s housing is firmly in bubble territory with entire cities remaining unoccupied (ghost cities). All bubbles end one way (badly). Contrary to what the Aussie Banks (with vested interests) will tell you.

The demand for raw materials will subside as China has already stockpiled plenty of Iron ore, Copper etc. BHP and RIO are well off their recent highs and firmly in bear market territory. Gold and Silver are in for a rough ride with Silver down near 10% yesterday and looks pretty much the same today. The last bastions of safety coming under selling pressure, a precursor to a major selloff with a flight to safety of the USD. The Aussie $ is also coming under pressure.

The Sovereigns are in much worse shape this time and may/will not be able to bailout the Equity markets and Banksters. People are going to feel a lot poorer than they did last year. House prices will come under pressure and the argument of supply and demand will be replaced by a crisis of affordability imho

Car prices are not very high (30 to 50k with a drop of 5 to 10%) in the scheme of things when viewed in context of the economic problems facing the world.

Disclaimer: This is not financial advice!