Tenth Amendment Center: Pop Goes the Federal Reserve’s Auto Bubble
...from Tenth Amendment Center It looks like the Federal Reserve-induced auto bubble just popped. Yesterday, GM announced plant closures and layoffs due to sluggish sales. The big automaker said it plans to shutter five North American factories and slash around 14,000 jobs. The move follows on the heels of an announcement by Ford in October that it will cut an unspecified number of salaried employees. Morgan Stanley speculated Ford may pare more than 20,000 jobs from its global workforce. According to the New York Times , slowing sales served as a prime driver in GM’s decision to slash its operations. Part of the retrenchment is a response to a slowdown in new-car sales that has prompted automakers to slim their operations and shed jobs.” Most people give the sitting president the credit or the blame for what’s going on in the economy. In this case, the current administration does shoulder some of the responsibility for t...