[Auggiedoggy]

I agree Gman that alot of the cheap haulers are going out of business, someone will always cut the rate to get the freight. I guess more specifically, where or what part of the economy do you see picking up to help to raise the rates to a more liveable standard? Last year we were all told that "It will pickup in the spring". Well spring has come and gone and we are still hearing that there is not much going on. Dont get me wrong I want the country to get back to "normal" as soon as possible. I do think though, it will take quite a while to get back to where we would all like to be .

[GMAN]

I have been expecting the economy to drop for some time. No economy can sustain unlimited growth. There will always be corrections. Not including the energy industry, our economy mostly relies on construction and the auto industry in one way or another. When those two segments begin picking up the economy will start to turn around. People are scared. They are beginning to understand that this stimulus package is really a huge tax on the American worker. They also see the government taking over much of the banking, insurance and auto industries. This is a new concept to most Americans. They don't know how to deal with a government run economy. Until the average citizen regains confidence in the economy things are not likely to improve. The thing that will help turn the economy around is spending. Because so many people are scared or uncertain about the future they are holding any money they have rather than spending it on things they may not need.

Trucking is very dependent on the auto and construction industries. When these segments turn around then trucking will begin to show improvement. The U.S. used to have a very diversified economy. That is no longer the case. We currently import more than we export and have for many years. Were our economy more diverse other segments would have a greater impact and the auto and construction industries would have less significance.

Carriers and owner operators are as scared as the general public. Many of them are taking freight too cheap to make a profit just to keep their trucks moving. It may work for the short term, but no company can operate for long without making a profit.

I had hoped that things would improve with spring. That is the way it usually happens. This year I wasn't very optimistic, but was hopeful. I really don't see much improving at least through this year and likely into next year. I think this will be a slow recovery. It will probably take several years to fully recover. Had the government not interfered in the economy things may have already started to improve more. There are some slight improvements in a few areas of the country. But for most of the country the economy is not doing well. I think that if the current administration would stop spending money the average American would start to gain more confidence in our economy. It seems that every day when you turn on the TV all you hear is how the government wants to spend more money. They can't even balance the budget and yet want to spend more money. People need to have confidence in our economy. I think that if the government would start to show some restraint and work to balance their budget it would encourage the American public and give them a boost of confidence.

Freight rates are tied to supply and demand. There is still too many trucks demanding more freight than is available. The result is a price war to the bottom. We still need more of the cheap freight haulers to go out of business. The more who fall the better it will be for the industry. I know it sounds harsh, but we still have an over capacity of trucks. At some point enough will go out of business and then the economy will turn. Rates should rise much more quickly with diminished capacity. It is difficult to put an exact timetable on it, but I expect to see more of a positive turn sometime next year.

[Bigmon]

Originally Posted by Auggiedoggy

Dont get me wrong I want the country to get back to "normal" as soon as possible. I do think though, it will take quite a while to get back to where we would all like to be .

Some would argue that this is normal.

Not long ago a landscaper could buy a $500k house without credit or proving income. Look how may forclosed houses have 2-3 Plasma TV's and new cars in the driveway.

Don't rule out the idea that trucking companies want a bailout so they are keeping things bad.

[Tadpolly66]

Just wanted to put some closure to this thread, I have decided against purchasing a truck at this time. I think it would be hard to survive at this point, much less thrive. I like to drive, but I'm not willing to live in the truck. In the interim, I plan on getting more endorsments on my CDL and wait it out. Thanks to all that responded.

Best Regards,

Tad

[Auggiedoggy]

I agree that people have to start spending money, but when the government wants to try to tax, Im sorry, when the goverment taxes everything that you do, buy, eat, sell, etc., it is pretty difficult to have a whole lot extra to spend on the "wants". I for one DO NOT want a goverment that owns any of the banks,car makers, or insurance companies that they have taken over. Hell they can't even run themselves. I pray to the good Lord every night that He will have mercy on this great country of ours. Every one have a good 4th of July,and God bless the USA!!!!

[GMAN]

Originally Posted by Tadpolly66

Just wanted to put some closure to this thread, I have decided against purchasing a truck at this time. I think it would be hard to survive at this point, much less thrive. I like to drive, but I'm not willing to live in the truck. In the interim, I plan on getting more endorsements on my CDL and wait it out. Thanks to all that responded.

Best Regards,

Tad

I think that is a wise decision at this point, Tad. You might be able to make it but prospering will be the challenge. Hopefully, things will get better next year.