Friday, November 21, 2008

The "D" Word, and the UAW

Deflation: A persistent decrease in the level of (consumer) prices or a persistent increase in the purchasing power of money because of a reduction in available currency and credit

Need an example?

Back in 2005, during the boom, the company sold a used hydraulic dirt excavator for $309,000. That same excavator changed hands Tuesday for just $50,000

That would be in San Diego, CA.

This will have an impact on Deere, CNH, JLG, Gehl, and Cat, folks.

By the way--there are a lot of UAW workers in the above-named companies. Expect to hear "bailout" from them in the next 12 months.

HT: Calculated Risk

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