What is different now is that China and India have awakened over those 16 years from being third world countries whose consumer products were novelty goods at Pier One, to now being flat-out competitors. It was disclosed this week that GM sold more Buicks in China than they did in the United States in 2007. Jaguar and Land Rover were sold to Tata Motors of India. How ironic is it that the jewels in the crown of British motoring have been sold off to the Jewel in the Crown of the former Empire - because neither BMW nor Ford could figure out how to make a profit off them?
Perhaps it is no coincidence either, that now the level of consumer credit defaults has risen to the level of - you guessed it! 1992. The American Bankers Association reported that in its survey of eight categories of loans, including credit cards, accounts paid over 30 days late were now at 4.38 and rising. Of course, with the late payment charges now also at an all-time high (essentially an undisclosed interest rate hike) the banks have a way of winning this battle against the consumer as well.
It makes one think that the Bushes like to leave dirty diapers to clean up. But that's a whole other column.
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