Car sales have dropped 38% since the beginning of the year to a level that has not been reached since the great recession in 2008.
Since most of the world is still locked up, most ordinary people lack a stable income. With consumer sales declining, most industries are experiencing a dramatic decrease in total sales. As BeInCrypto has previously reported, is the trust of US consumers. it also collapsed.
However, as consumer spending declines, more industries could soon be at risk and demand a bailout – the auto industry appears to be one of them.
The US auto industry is suffering
As the purchasing power of an average American declines, US auto sales decrease and they have also fallen sharply. According to the Office of Economic Analysis have car sales decreased by 38% The only other comparable decline is the one that took place during the great recession – and at that point the auto industry also received a bailout
Car sales fell only 38%.
As bad as the Great Recession.
Car dealer … another industry that is lining up for a government bailout. pic.twitter.com/RplMxXiD1U
– Otavio (Tavi) Costa (@TaviCosta) April 7, 2020
With the Federal Reserve printing new currencies at a record $ 60 million per minute rate, such a bailout package could be on the table. The aviation industry and other sectors have already received emergency aid, so other sectors are likely to ask for help in the next stimulus package.
A deflationary crisis?
There is often talk of an inflation crisis in the crypto space because the Federal Reserve is tirelessly printing money. However, today’s global crisis is a depressed demand crisis. There is simply not enough spending to keep the economy alive, which leads to a fall in prices, which leads to a “deflationary shock”.
As a deflationary currency, it is better designed to deal with inflation and one of its main selling points. How will Bitcoin and the cryptocurrency sector develop in a deflationary crisis? The verdict is still pending. Since the Federal Reserve already has very low interest rates, you no longer have many instruments at your disposal to deal with such a crisis.
Bitcoin has remained stable at the moment, but is currently up 3.30% a day and is trading above $ 7,350.
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