UPDATE: Car sales DON'T Confound Consumer Comeback

Bloomberg reports that vehicle sales were down 42% YoY in March (slightly worse than the last record decline, last month, of 41%), to a record low 8.8 million units -- also a record low, down from last month's 9.1 million.

While general retail sales are showing signs of life, and even home sales are rebounding slightly on dramatically lower prices and low mortgage rates, consumers are still reluctant to spend money on (or maybe, unable to get financing for) new vehicles.

UPDATE: Bloomberg updated their story (and didn't acknowledge a few changes in math). Now the story reports a 37% decline to 9.86 million vehicles -- which means an increase.

Methinks someone at autodata (the source of the aggregate numbers) made a math error.

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Lack of confidence.

They are willing to buy non-durable items but not big ticketed items.

As for home sales: is there a way to determine what price point is seeing the activity? Because prices are so low in some areas of the country that first-time home buyers may be jumping in the market. But, is there enough of them?

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Henry Ford, every worker should be able to afford what they make

His old adage that every worker needs to earn enough to be able to buy the things they are making I think needs to be made into a mathematical axiom for economics.

Then, frankly many cars just cost too much money. I mean come on $50k for a new car? Even $20k I think lends to about a $400 dollar car payment.

Who can afford that on our lovely newly touted manufacturing wage of $14/hr?

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