Thursday, February 19, 2009

The Case for an Auto Bailout

In taking a closer look at yesterday's industrial production release, I pulled all the data, and sorted those industries showing the largest drop in production over the past 7 months (7 months is the furthest back the Federal Reserve details at this level).

Not surprising, the largest drop in production was within the auto industry. What did surprise me (it shouldn't have) was how sharp the decline was.

While I am not saying a bailout is the answer, I am not sure how any business would be able to survive when production goes down this much, this fast.

Source: Federal Reserve


  1. Is this the trajectory we would have followed if we had ratified the Kyoto Protocol?

  2. i know at a high level what the kyoto protocal is, but how does it relate?

  3. If you want to feel sorry for someone, feel sorry for us north american oil and gas producers. Have you seen the charts! No one is making money and many are loosing.