It seems like a lifetime ago, when I tinkered with the idea being an auto mechanic. It was time well spent as there is nearly nothing that I cannot fix on a car to this very day, save for that darn check engine light.
So when my wife's car needed a clutch which did not fall under the vehicles warranty, I knew immediately what to do. I had her take it directly to our local mechanic!
Shortly after that, I watched a special on PBS. One very knowledgeable guest whom I wish I could properly credit pointed out the basic fact that during the great depression, the bulk of the country was chiefly employed in manufacturing industries. He also pointed out that the country has shifted greatly to being service employed in the past decades and as such, does not expect the big bust to be nearly as bad as the media would like us to believe.
Looking into this theory a bit deeper, we see that industries such as construction and auto manufacturing have been hit hard. These are manufacturing industries. Wall Street has also taken its hits but consider that its investment banking services derive almost all of their income from manufacturing firms.
On the other side of the equation are companies like Sirius XM radio, which despite cries of depression/recession, seem to be growing revenues and cutting costs, while improving their balance sheets during these tumultuous times.
My own experience has led me to subscribe to this theory with all of my being. I work in a service industry, and business is booming for me. In fact, finding time to write seems to be my biggest challenge these days.
Years ago, former Sirius CEO Joseph Clayton made the statement that those that were betting against Sirius were betting on the wrong horse. I think these times call for a repeat of that sentiment.
Position: Long Sirius XM