How did this occur?

  • Posted by a hidden member.
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    Apr 18, 2009 11:34 PM GMT
    "Spring has come to Stuttgart. Cafes are full and young people walk arm in arm through the city’s crowded pedestrian malls. The central train station is spotless as are the city’s parks. Germany’s Motown is clearly no Detroit."

    -- Norman Pearlstine

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    Apr 19, 2009 1:08 AM GMT
    icon_confused.gif

    .... Or because automakers across the pond have healthier foreign markets combined with less crippling labor costs. VW AG will probably take the # title for a while. At least until the big consumption based economies like the US recover.

    And for those interested the OP quote is from here:
    http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_pearlstine&sid=aZ93JIvKP.i8
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    Apr 19, 2009 1:19 AM GMT
    I'm guessing this is one of those infamous quotes I'm to young to have heard much about?
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    Apr 19, 2009 1:27 AM GMT
    I do not think that Detroit will be able to recover.

    The days of heavy American industry are probably over, because there's hardly anything that America can do that can't be done somewhere else more cheaply.

    America could let the dollar fall in value so that its products are cheaper for the rest of the world, but China owns trillions of dollars, locked away in the bank.

    If the dollar falls, the Chinese government loses money and it's unlikely the Chinese government would allow that to happen without serious repercussions.

    I come from a part of Britain which has been pretty much devastated by the collapse in heavy industry here. What matters most is that the government manages the decline and finds other ways for places like Detroit to make money.
  • barriehomeboy

    Posts: 2475

    Apr 19, 2009 1:29 AM GMT
    Hot German guys in distress are always stimulating.