Thursday, March 12, 2009

Used car prices bounce


Here's another quick chart before we leave for the slopes. This shows that the prices of used cars rebounded significantly in January and February. That's another sign that we've seen the worst of the economic news (see previous post for more details on what this bounce means). It also suggests that economic weakness is not leading to a general decline in the price level. There is still plenty of money out there to support prices.

8 comments:

Colin said...

You're leaving for the slopes and I've just arrived at Calafia Beach!

Scott Grannis said...

Give my regards to the dolphins!

Cabodog said...

Scott --

More signs of a rebound:

http://cbs5.com/business/real.estate.sales.2.956968.html

San Francisco real estate is booming, with more sales in the last two weeks than in the last SIX months. Click on the video to the right of the headlines to see a most interesting story.

joemckendrick said...
This comment has been removed by the author.
joemckendrick said...

Scott -- In case you didn't catch it, Larry Kudlow picked up on your analysis as a "Mustard Seed" for the upcoming recovery last night! (Mar. 12)

Scott Grannis said...

Joe: I don't watch TV, so thanks for letting me know about Larry's show. Mark Perry also picked up on this (Carpe Diem).

Scott Grannis said...

Cabodog: I don't understand why it is so hard for people to understand that free markets can solve problems very easily by changing prices. Your example of SF real estate is a perfect example. Lower the price and you clear the market. No more excess inventory. Problem solved, life goes on. Some lose, some win. That's what it's all about in the game of investing and risk-taking.

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