There is a major problem brewing the US Auto industry... and therefore the US economy.
Automakers just unleashed a massive production surge to keep the dream alive...
[3]
With inventories at record highs (having risen for 61 straight months)...
[4]
Which would be fine if sales were keeping up - but they are not...
[5]
And now the subprime auto loan market is set to collapse... [6]
And here's why stock markets should care...
[7]
To sum up...
The only way automakers are making sales is by lowering credit standards to truly mind-numbing levels.... that cannot last.
China's economic collapse has crushed forecasts for the automakers.
Inventories are already at record highs.
And July saw a massive surge in producton.
What comes next is simple... a production slump - just ask The Atlanta Fed. [8]
