Mind The Dealer Lots----December Auto Inventory Ratio Highest Since August 2008

By Tyler Durden at ZeroHedge

While day after day we are told how fantastic auto sales are in America... and how the reported data from the automakers shows just how 'strong' the US consumer must be.. and therefore the US economy.

However, as the following chart shows - it's all false!!

Relative to apparently surging sales, inventories of (unsold) motor vehicles are at their highest since August 2008...


In other words, the channel-stuffed "see how well we are doing" smoke and mirrors of credit-fueled malinvestment has hit a wall and yet the automakers - afraid to signal any chink in that armor - kept producing... there is only one way this ends... badly!

Simply put - The last time automakers channel-stuffed this much, Lehman and GM went bankrupt shortly after.

Source: The Last Time Automakers Channel-Stuffed This Much, Lehman and GM Went Bankrupt - ZeroHedge

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.