Comments on: U.S. auto sales plummet: everyone down over 30% http://www.creditwritedowns.com/2009/01/us-auto-sales-plummet-everyone-down-over-30.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: John Creighton http://www.creditwritedowns.com/2009/01/us-auto-sales-plummet-everyone-down-over-30.html#comment-2326 John Creighton Tue, 06 Jan 2009 12:23:11 +0000 http://www.creditwritedowns.com/?p=3274#comment-2326 The concept of access demand and overheated economies seems to go against classical theories of international trade. In a more classical view countries should produce on their production possibility frontier boundary and it seems to be that these credit cycles clearly show the weakness of some economic models which are taught to university students. Sure the car industry is relatively inefficient and needs to shrink relative to other industries. But had their been sufficient money supply then their would be sufficient demand to buy those vehicles. The concept of access demand and overheated economies seems to go against classical theories of international trade. In a more classical view countries should produce on their production possibility frontier boundary and it seems to be that these credit cycles clearly show the weakness of some economic models which are taught to university students.

Sure the car industry is relatively inefficient and needs to shrink relative to other industries. But had their been sufficient money supply then their would be sufficient demand to buy those vehicles.

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