View Single Post
      11-11-2014, 12:58 PM   #12
NickyC
Lieutenant General
NickyC's Avatar
17496
Rep
10,667
Posts

Drives: M4 CS. Former G82, x2 F82, F80
Join Date: Nov 2010
Location: Jacked out of my mind

iTrader: (23)

When people don't have money, they don't buy toys (sports cars). The fact of the matter is, the middle class in the USA has been decimated over the past seven years since the financial crisis and the prior standard of living isn't coming back anytime soon. The job situation in Europe is even worse and when you have two major markets that have seen the absolute destruction of middle class jobs, you will obviously see people focus on more utilitarian vehicles and drop the sports cars.

Lambo, Ferrari, Porsche, Aston, and all the other high end makers are immune from this for now of course. The insane and unsustainable increase in asset prices due to central bank and Fed pumping over the past seven years has assured that the 0.1% will have more money than ever to blow on luxury items. This will of course come to end sooner rather than later, with another collapse like 2007 (which I imagine will be far worse the next time). Lots of rich people are rich on paper only and are highly leveraged. Once the margin calls start coming in and the herds head for the small exit door, Lambo and all the car manufacturers will see huge decreases just like they did in the last crisis.

2007 changed everything, the next phase is coming.
Appreciate 1