This may end up being the final straw for what’s left of the global economy. With more highly negative signals from copper, gold, oil and swaps, even bond spreads here, we’re getting more impressions that the part rolling recession is now rolling right on into the full thing. If this one goes, that’s usually it.
Stellantis Could Sell Off Struggling Brands As Soon As 2026
https://jalopnik.com/stellantis-could-sell-off-struggling-brands-as-soon-as-1851675898
Sharp fall in auto production typically precedes a recession.
The 2008–2010 automotive industry crisis formed part of the 2007–2008 financial crisis and the resulting Great Recession. The crisis affected European and Asian automobile manufacturers, but it was primarily felt in the American automobile manufacturing industry. The downturn also affected Canada by virtue of the Automotive Products Trade Agreement.
The Chip Shortage Is Mostly Over, but the Auto Industry Hasn’t Fully Recovered:
The good news for the US auto industry is that the chip shortage is mostly over, though we expect that some supply chain hiccups may occur from time to time.
Automakers can finally increase production, which should result in more inventory but also more discounting. Higher discounts may sound alarm bells for some investors, but recent incentive levels have been extremely low, so we think the industry has room to offer more discounts without destroying profitability. We also think more discounting is needed to give potential customers a carrot to help mitigate the impact of higher interest rates than before the pandemic.
Is There Another Global Chip Shortage Coming?
Fears are growing of another major chip shortage following China’s decision to restrict the supply of key materials.
The tech industry has only just recovered from the last global chip shortage, which began during the Covid-19 pandemic in 2020 and ran right through to 2023. The shortage affected a wide range of goods, including computer processors, graphics cards, games consoles and cars.
Now there are concerns that shortages are about to resume, given the tight supply of materials such as gallium and germanium, which are used in the manufacture of semiconductors.
https://www.forbes.com/sites/barrycollins/2024/08/27/is-there-another-global-chip-shortage-coming/
In 2007 the average price for a home was $180k and the average price of a car was $20k
If this is a duplicate of 2007, silver went to $50 back then. $50 in 2007 is like $76 dollars today. Also, if the gold to silver ratio went back to 40:1 like it was back then, and gold was at $3000….bam. $75 silver.
First rate cut in 2007 was September 18, also 50 basis points like this year as we go into recession.
AC