Excess Consumption is finally realized? Or not.

With the current economic meltdown, layoffs, and lack or credit most American's are experiencing something most have never before. This situation is no different is how trendy America really is. Remember back to the summer of 2008 when regular gas was around $4/gallon. Back then a 1995 Ford Festiva went from being worth $1500 to $4000 simply due to its fuel efficiency. Now the trend is to live with less. But is this mentality really here to stay? Many people say once this dark cloud begins to pass (which it will) the decadent consumption we used to will continue. How many people are going to remember the current economic times in 2, 4, or 6 years when our economy will be recovered? Large homes, SUVs, and granite countertops will make a comeback. Afterall how can you change the mentality of millions of Americans in just a few years with only one or two hard years of economic hardship. While I am not advocating a longer recession I am adocating a little more thought from my fellow Americans. Even in this current glut high end auto manufactorers such as BMW, Mercedes, and Porche are planning to introduce more higher end cars. Yes, they might be fuel friendly but BMW see's growth in the their flagship 7 series sedan during the next 3-6 years. These are $60,000+ cars I am talking about. Porche, they feel so confident that they are now introducing a $70,000 sedan in the US market in the next couple years.

Why are auto makers so confident in America? Is it they know we will always be prosperous? I am sure that is true. But, they know a nation of excessive consumption will always find a means to purchase what they produce. Even if it means financing a $70,000 for 60 months. My mentality is if you need to finance a $60,000 car for more than one year, then you should not be buying it.

Time will only tell.