End of the AXL Strike Is a Big Deal
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The end of the
American Axle
(AXL) - Get Report
strike is going to cause a good ramp in economic activity. This strike was huge, a real crimp on GDP, and can only be considered a giant positive for the economy.
I increasingly see many signs that things are getting better, although the only thing that worries me is that the administration, which really never acknowledged that things are bad, is saying all is well.
In truth, the American auto industry has been a gigantic problem for a very long time in the country, both with its downsizing and its labor problems and anything that allows
GM
(GM) - Get Report
just to put out cars is going to bring a boost to one of the most beleaguered areas of the country: the Michigan, Indiana, Ohio area.
The key to stabilizing house price depreciation is to contain it to Florida and California. This strike's ending might help keep a cordon going. Remember, I am not oblivious to softness around the country, particularly after Bob Toll's sobering comments on my show last week. But I do believe that those can be solved psychologically by a better economy, whereas California and Florida need a host of things to go right, including the end of endless spec construction by homebuilders anxious to pay bankers; the need for looser immigration, as that helped propel sales; and some hope from Washington to keep people in homes through FHA assistance.
Don't overlook this strike's impact. It hurt everything from wages to raw materials. Those will snap back quickly now and make the recession scenario that much tougher to propound.
At the time of publication, Cramer had no positions in the stocks mentioned.
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