"With the industry at 10% [incentives] you are in a push market. This is top cycle stuff. It's that fine balance...How much can I push the boundary without prompting a reaction that pulls all of us down?"
"It’s taking a lot more incentives now to move the metal than it did last year or certainly the year before. Things are slowing. If this level of incentives continues, it certainly will eat into profits."
When debt grows much faster than GDP for an extended period of time, it is inevitable that a good portion of that debt will start to go bad at some point. We witnessed a perfect example of this in 2008, and now it is starting to happen again.
With global stock markets basking in the afterglow of Dow crossing 20,000 for the first time, on Thursday they propelled higher in sympathy with the US, as Asia and Europe are trading solidly in the green, as is the dollar which rebounded strongly off a 5 week low.
After months of threatening to levy a 35% border tax a cars imported from Mexico, Trump will sit down with the CEO's of the Big 3 domestic auto manufacturers this morning to discuss ideas on how to keep manufacturing jobs in the U.S.