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October 30, 2009

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Interesting post, I like your methodology. Also, the Times keeps hammering Edmunds regarding cash for clunkers. There may have been some pull through of demand but that will be matched by output to rebuild inventories. So maybe cash for clunkers is not a 1 quarter gimmick but a 2 or 3 quarter gimmick, I don't know. Let me know if you or anyone you know has done some thinking about what greater economic volatility henceforth will mean for the real economy.

Shaggy - yes, this quarter we see auto consumption up, more than offset by increase in auto imports and decrease in inventories...next couple of quarters we may see decline in auto consumption, offset by a decline in imports and an increase in inventories, making the whole thing a wash.

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