The LA TIMES reports that Americans now buy more imported cars than those made at home. This must be an important milestone. The car business is a big business. It is also a complex business, and a high-tech business, with long supply chains involving hundreds of different industries and thousands of different skills.
But don’t worry, dear reader. All those people who used to be involved in the auto business will go into finance. That’s where the money is… Well, that’s where the money is when the country is in a credit bubble. But when the bubble pops, the money disappears. People who used to sell mortgages wish they could get jobs selling cars.
The US auto business isn’t dead yet. But with China just introducing its cars into the American market, it may not be long before it gives up the ghost. Of course, the auto business isn’t the only way to make money. But it was a good way to make money for a long time. And you have to wonder…if the US of A can’t be competitive in autos, what can it be competitive in?
The Daily Reckoning Australia