Forgetting recent bailouts and the financial crisis automakers expect unlimited growth
A few years back after the house of cards we called the financial crisis fell we all looked around at one another in the circular firing squad and wondered how we could ever be so dumb as to think we would all keep getting richer next year without actually creating anything more than we did last year. We all decided we would name this “irrational exuberance.”
After the stock market halved its value, General Motors went through bankruptcy, and the housing market tanked, we auto buyers kept our heads down. Even those who could afford a new luxury car were not going to buy one. Who wants to look like the show-off stickin’ it to the little guy? We all held off buying cars for a variety of reasons. Then the government gave us all a bunch of our money if we would simply bring in our old beater and trade up to a 15 mpg truck. Of course we had to trade a 14 mpg truck, but that is what we all call progress. Then we all stopped buying cars again for a bit. Old Betsy finally gave up the ghost this year and off we all went again and we bought new cars. 14 million of us did it. More than most years in modern history.