Saturday, 22 November 2008

Economic downturn effects

This article about the growing warehousing of imported cars in the US interested me for one reason: the way it highlights the flow-on effects of the economic downturn in other areas. These two paragraphs are the main part of the article for me:

But the inventory glut in Long Beach is not limited to imported cars. There has also been a sharp drop in demand for the port's single largest export: recycled cardboard and paper products.

This material typically goes to China, where it is used to make boxes for new electronics and other products that are sent back to the United States. But Chinese factories reacting to sharply falling demand are slowing production, so they need less cardboard. Tons of paper are piling up recycling businesses around the port, the detritus of economies on hold.

A sea of unwanted auto imports

Originally from The Strategist (Kotare)