Abenomics soothsayers and apologists are worried: the August debacle is hard to explain away, even for them.
Subprime giveth, subprime taketh away.
Taxpayers get milked. And California’s environmental laws, signed by Gov. Reagan, get shafted. Very ironic for a company that hypes its “green” credentials.
One of the many oddities of this cycle is that many things that were good in normal times have become bad.
Neither a mad scramble into subprime loans nor the highest incentives since crisis-year 2010 could move the iron.
So let’s get one thing straight. Uber is not an exciting entrepreneurial endeavor. Quite the opposite. It’s backed by three of the largest corporations in the world, all merged together to again outspend the underdog and disrupt the middle class.
The nightmare for Tesla started when a stolen S, as it crashed, split into two, with one half bursting into flames. This just isn’t supposed to happen with modern cars.
Banks are again taking the same risks that triggered the financial crisis, and they’re understating these risks. It wasn’t an edgy blogger that issued this warning but the Office of the Comptroller of the Currency. And it blamed the Fed’s monetary policy.
Even the soothsayers and spin doctors expected a downdraft after Japan’s consumption tax was jacked up to 8% from 5%, effective April 1. But not this.
March auto sales trickled out today. Beneath the wondrous hype about how they’d finally exceeded expectations, after they’d been perfectly awful for five of the prior six months, was a doozie. And the media, which normally fawns all over Tesla, covered it with a blackout.