Weekend News Bytes — April 13, 2020

Weekend News Bytes — April 13, 2020

(AmericanProsperity.com) – Over the weekend, the Pentagon warned US enemies not to test America as the military combats COVID-19 within its ranks. In consumer news, concerns are rising about the used car market’s potential collapse as the value of pre-owned vehicles drop. Rounding off the weekend with political news, Democratic Socialists of America refused to endorse former Vice President Joe Biden, further weakening the Democratic party.

Pentagon Warns Enemies: Don’t Test Us

As of Friday, April 10, the Department of Defense (DOD) said 3,366 military personnel had contracted COVID-19, and one died from the illness. Over the last week, 2 aircraft carriers and 150 US military bases have been dealing with the highly-contagious virus. This has shifted the focus of military officials towards implementing strategies to deal with the outbreak.

Our armed forces are still prepared for anything to happen, though. Joint Chiefs Chairman General Mark Milley said the military is “still ready no matter what the threat.” Milley further emphasized it would be “a terrible and tragic mistake” if any US adversaries tried to take advantage of us during the COVID-19 crisis.

The total fighting force of the US military is 2.3 million airmen, sailors, soldiers, and marines. Milley stressed that our military is strong, capable, and ready to face any and all threats. For any country considering making a move, this couldn’t be a worse time as the military’s patience is sure to run much thinner amidst this pandemic.

Used Car Prices May Be Collapsing

With the US economy shut down to combat the COVID-19 pandemic, used car auctions and dealerships are virtually paralyzed. Vehicles are piling up as demand shrinks given the numerous stay-at-home orders across the nation. This has the auto industry deeply concerned about the warning signs when the economy opens back up for business.

High inventory and low demand could mean a massive drop in used car prices. That would be great news for consumers. However, if preowned vehicle prices plummet, it could hurt manufacturers, lenders, and rental companies.

Auto manufacturers have their own finance units and leased vehicles are highly profitable. If used car prices dramatically drop, it may shrink demand for lease vehicles as consumers rush in for steals on preowned models — undercutting manufacturers’ profits even more. In addition, auto lenders are also concerned as interest rates sit at all all-time lows.

When combined with lower prices, this creates even tighter margins for lenders. Finally, rental companies may need to sell their cars to stay afloat during the pandemic. If they sell their inventory at deep discount prices, it’ll add to the cost of maintaining their rental fleets.

The reality for the auto industry is grim. Dealers may have to get as much cash as possible now to sustain their businesses today. If car dealers and rental companies can’t make ends meet now, they may not survive until the market bounces back.

Democratic Socialists of America Refuse to Endorse Biden

On Sunday, Democratic Socialists of America (DSA) said it would not be endorsing former Vice President Joe Biden. The 56,000-member group supports far-left candidates such as Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY). The group’s Twitter statement immediately drew criticism from Biden supporters and establishment Democrats.

Biden supporters warn that the DSA might help re-elect President Donald Trump if it doesn’t get behind Biden, the presumptive Democratic nominee for president. DSA officials have said it’s their mission to run candidates as socialists. As a result, it won’t run candidates under the Democratic National Party as Sanders has done.

~Here’s to Your Prosperity!

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