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[Pen-l] query



How could one explain that the breakdown in the car markets is as severe as it is? Hypothesis (a) cars behave like luxury goods? Hypothesis (b) banks and car dealers are more reluctant to give credit for car purchases? Hypothesis (c) the high gasoline prices of 2008 scared motorists? Hypothesis (d) consumers are postponing the purchase of a new car, adopting a wait-and-see attitude in response to the climate of financial uncertainty and are a bit more willing to drive an old clunker? Hypothesis (e) car manufacturers inflate their problems in order to get a maximum of public cash? Other?
Gernot



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