Article Source Unfortunately, this seems to be unfolding according to script. The dramatic abandonment of gas guzzlers by American consumers continues, with last month's sales of domestically manufactured light trucks (which includes the once almighty SUV category) down 28% from June 2007. The dramatic abandonment of gas guzzlers by American consumers continues, with last month's sales of domestically manufactured light trucks (which includes the once almighty SUV category) down 28% from June 2007. Data source: Wardsauto.com Sales of imported SUVs, which had been holding up better, plunged even more dramatically. Data source: Wardsauto.com For the lighter car category, sales of domestics fell 13%, Data source: Wardsauto.com while imported cars, which tend to get better mileage, eked out a 4% gain: Data source: Wardsauto.com...

We should see Wall Street start off with a nice rally this morning, though I won't place a bet on where the day ends. Markets are terribly oversold and yesterday's action ended in a bullish reversal on high volume at support -- that's VERY bullish.And yet we seem to get more terrible news all the time ...BAD NEWS FOR THE CONSUMER ...

Auto sales plunge

June auto sales plunged, according to reports from the nation's major automakers, as Americans shunned pickups and SUVs in the face of record gas prices. General Motors reported that its U.S. sales fell 18% in June versus a year ago. Sales of GM's light trucks, which includes pickups, SUVs and so-called crossovers, tumbled 16%. GM's car sales dropped 21% in the month.

BAD NEWS ON INFLATION ...

Manufacturers struggle to overcome rising prices

NEW YORK - Each week, Ira Cooper opens

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Article Source: There's been a lot of discussion recently about the effects of high gasoline prices on the quantity demanded of gasoline, as well driving behavior (Jim Hamilton, Jim Hamilton, CR, CR, Paul Krugman). David Austin, whose work I have cited often on this blog, gave a fascinating presentation, entitled "Effects of Gasoline Prices on Driving Behavior and Vehicle Choice" at the recent Society of Government Economists conference in Washington, DC a couple of weeks ago. In it, he tackles some of these issues. (Note, these are his own personal views and do not necessarily represent the views of any specific organization.) I could discuss each of the graphs in detail, but I think I will let them speak for themselves. Figure 1: Gasoline consumption has declined as prices have increased. Source: D. Austin, Presentation at SGE, June 2, 2008....