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Doomed

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Yes, Detroit is doomed and has been for a long time. It has been since the last recession. Do you ever hear anyone say "I'm moving to Detroit?" I don't and although I have family members who have been there for over 40 years who love it; they tell me about the crime that we never read about because it is running rampant.

What other industry do they have except cars? You don't hear of big business moving their home offices or warehouses there either like they do, for example, to Denver, Seattle, San Diego or even small towns like Little Rock, Arkansas, or Independence, Kansas, etc.

Then, you have people who are going to the UK and other countries to purchase their cars, who are having them shipped because they can get greater discounts this way. I believe cars, just like the housing market; are getting ready to take a big drop in price. There are dealers who are giving gifts, along with great discounts, when you buy a car.

With GM going on strike, and billions lost because of this strike; many people will lose their homes, and other businesses will also be affected. Some people cannot wait to see if there is a turn-around because they have children in college, for example, or they live payday-to-payday; so they will be leaving Detroit. They do not have savings to fall back on.

It has been predicted that the housing market might not make a comeback until mid-2009; and because most homes in certain cities were overpriced; that a correction will occur. During this period; many people will be affected. Because the housing market has been the safest and quickest way to make money; if predictions are correct for the housing market; then it will take longer for the American car industry.

If you will recall, during the last recession; many people lost their jobs because of the auto industry's downsizing. In fact, some were walking away, leaving their homes because they could not afford to keep it, while others were moving there to take advantage of this and moving into homes for just a small amount. In fact, a friend purchased her home that way; the people just wanted enough money to be able to get into their car and move to a smaller town where their family resided.

Although there was somewhat of a comeback from the last automobile depression; I do not believe that will occur this time because we live under very different circumstances: gas continues to increase, we are in war, there is continuous fear of terrorism, people are not traveling as much as they used to, and money is not in circulation.

Forecasters have already predicted a blue Christmas. I hate to sound like a "dooms-day" type person; Detroit and the American car industry looks bleak!

Learn more about this author, Gloria Edmonson Nelson.
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