Japan reduced the key rate to 0.1%. This happened only a few days after the US reduced the key rate to a range 0% - 0.25%. This means it is now almost free to borrow money 
Maybe we’ll soon get a premium if we borrow money 
Free money certainly entices everybody to spend more, but what will happen if everybody starts spending money they do not have without loosing anything? What happens to those who want to save money?
The US Senate decided not to “invest” billions of dollars in the US auto industry. Therefore, GM, Ford and Chrysler are now close to bankruptcy. Also, about three million people are about to lose their jobs.
Now, it looks like everybody hopes Obama will do something about this early next year… I very much doubt it.
2008 Nobel price winner Paul Krugman claimed that the US auto industry will probably dissappear due to “geographical and economical dynamics”. In other words, soon enough, nobody will want to buy American cars. They need too much fuel, don’t they?
Under these circumstances, European and Asian car manufacturers might just survive… Or, maybe, less people will buy expensive cars and, over the next years, only cheap cars will be sold. Will we drive cars “made in China” in five years? Or maybe 2000$ cars “made in India”?
In a surprise statement, Honda announced that they will not participate in the 2009 Formula 1 Season. Their decision was caused by the deterioration of the global auto market.
The F1 team is up for grabs, but will anyone want it? Also, can we expect other teams to follow? Will we see a Grand Prix similar to the one in Indianapolis (back in 2005) where only six cars run?