Here is a look at the harsh reality of what is unfolding.
A Look At The Harsh Reality Of What Is Unfolding
May 6 (King World News) – Gerald Celente: Detroit’s auto companies tentatively plan to resume limited vehicle production on 18 May, about two months after shutting down assembly lines during the virus pandemic.
The date was agreed on through talks among Ford, Fiat Chrysler, General Motors, the United Auto Workers union, and Michigan governor Gretchen Whitmer.
The union insisted on delaying reopening the plants in early May as originally planned, saying that more time was needed to design safety protocols for assembly-line workers.
Ford has not firmly committed to the May date, saying it still is assessing its’ supply chain’s ability to provide parts and designing safety measures that comport with government health guidelines.
As we have written since the beginning of the COVID War, auto sales, both for old cars and new, will dramatically fall, as will prices. Thus, resuming vehicle production will simply add more product to an already oversaturated market.
And, as we reported in the Trends Journal throughout 2019, auto sales were falling across the globe… especially in China, India, and Europe.
Auto Loan Industry Running on Empty
Late-paying auto loans among big banks increased by 7.5 percent by the end of the first quarter while late credit-card payments rose only 3.5 percent, Autonomous Research reported.
Banks attribute the rise in late payments to the fact that car payments are larger than credit cards’ minimum payments and, therefore, harder for cash-poor households to make.
Delinquent auto loans were on the rise before the crisis, reaching 4.9 percent at the end of last year, 38 percent higher than their quarterly average since 2003.
Sales of used cars also are slumping.
The number of used-car auctions fell by more than half, according to J.D. Power, which expects used-car prices to be down by as much as 16 percent during the second quarter and 4 to 6 percent for the year…
Billionaire Eric Sprott Buying
To find out which company billionaire Eric Sprott just bought a 12% stake in click here.
Airlines Will Jettison Planes, Routes
American Airlines, Delta, Southwest, and United are planning to become smaller in the months ahead after losing billions of dollars in this year’s first quarter.
American lost about $2.2 billion in the year’s first three months and is eating up about $70 million a day in fixed costs. American’s revenue dropped 20 percent to $5.5 billion during the period.
About 39,000 of the carrier’s employees have retired or taken unpaid leave.
American has said it has cut 80 percent of its flights for April and May and 70 percent for June, and it is starting with a “clean sheet” to plot next year’s schedules. The airline will have about 100 fewer planes in 2021 than it had planned.
Delta, Southwest, and United are mulling similar moves.
United reported losing $1.7 billion in the quarter, the largest quarterly drop in 12 years.
With the “New ABnormal” forcing flyers to wear face masks, and making up rules to keep them socially distanced in a non-socially distanced environment, the joy of flying, long gone for decades, will become extremely less joyous.
Airline travel, already down 95 percent from a year ago, will not rebound. As evidenced by billionaire Warren Buffet’s bailout of airline stock last week, the worst is yet to come for the airline industry and all business related to it.
World A Much Different Place
***Also Released: What The World Will Look Like As It Reopens CLICK HERE.
***To hear Gerald Celente’s predictions for the back half of 2020 as well as where the gold market is headed next click here or on the image below.
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