Monday, February 3, 2014

When Will the Next Auto Industry Bailout Occur?

The following chart shows the natural log of annual light auto sales divided by civilian employment. I'm using a natural log so that constant exponential growth (or in this case decay) can be seen as a straight line.

Click to enlarge.

Behold the two trend channel failures. The first was a massive failure to the downside and the next was a massive failure to the upside. Slow and steady recovery my @$$.

And on that note, I'll leave the exact date of the next auto industry bailout as an exercise for the reader. Sigh.

This is not investment advice.

Source Data:
St. Louis Fed: Custom Chart

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