Several local news outlets are reporting that car dealers are experiencing a post-Cash for Clunkers Slump in sales. There is concern that the government's incentive program took sales away from the fall (and even 2010) by giving consumers reason to purchase new vehicles over the summer instead.

It is definitely taking sales away from September. Edmunds.com calculates that September sales are running at an 8.8 million unit pace. To put this number in perspective, Edmunds Senior Statistician Zhenwei Zhou said sales last September were 12.5 million. He also added "it had been over 16 million for years".

Whether this month's slump continues throughout the remainder of this year and into 2010 remains to be seen. Many carmakers are expected to introduce new incentive programs in addition to rolling out new models. Plus, two of the best-selling cars over the past several years - the Toyota Camry and the Honda Accord

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How do you like this recovery? Pretty good, huh? Except for the jobs, of course. And except for the retail sales. And except for the foreclosures… and house prices. And incomes. And consumer prices. And business profits. It’s like a female impersonator… just like a real woman in every way, except for the essential ones.

At least stocks are doing well. The Dow rose another 36 points yesterday. In terms of time, it’s already beat the bounce of ’30… it’s in its 6 th month. In terms of stock prices, it’s still a laggard, however. US stocks are up about 45% from their low of 6,547 on the Dow. By that measure, the current reading of 9,398 falls a little short of the 50% increase registered 5 months after the ’29 low.

Yesterday’s news was a big disappointment for mainstream economists. It’s ‘back to the drawing board,’ says the Wall Street Journal.

The

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