Wikinvest Wire

Three Chevy Tahoes and a Wal-Mart Truck

Monday, June 26, 2006

On the way back from a weekend trip to the gorgeous Southern Sierra Nevada Mountains, the following activity was observed on a stretch of road just north of Bakersfield, California.

Somehow, this has got to be a metaphor for the United States and its economy in 2006.

For those of you not familiar with this part of the country, Route 65 goes north 50 miles or so from Bakersfield up through Porterville, and ends shortly thereafter. Unlike much of the rest of the state's roads, it is well maintained, having been resurfaced in recent years, and provides a fast, smooth ride out in the middle of nowhere.

The only real problem with this thoroughfare is that there is but one lane in each direction and this lane is shared by both passenger vehicles and trucks - passenger vehicles, many of which are desirous of getting from one place to another as quickly as possible, and trucks, ferrying goods to and from the Wal-Mart distribution center in Porterville, moving at a much slower pace.
After having already driven a harrowing 60 miles on the Western Divide Highway and Route M56 through California Hot Springs, down from a campground at over 7000 feet elevation after a few days of hiking, by the time we arrived at the non-descript town of Ducor (population 504) about ready to head south on the 65, we were just happy at the prospect of driving on a road that was mostly straight, where you could safely travel faster than 30 mph.

It was shortly after turning south onto the 65 that a large SUV filled the rear view mirror and in an instant was gone from view. It had quickly overtaken us and before we knew it was speeding ahead at what must have been better than 90 mph in search of other vehicles to overtake, bound for who knows where.

It was only about 9:30 AM, but it was already 93 degrees, on its way to 106 later in the day.

Before there was much time to settle in to a now much more relaxed drive where there were no more blind corners fraught with peril and no more peering out the window at sheer drops of hundreds of feet with no guardrail to protect errant drivers, another large vehicle was quickly upon us, and then around us.

Another Chevy Tahoe - similar to the last one, this one with custom wheels also.

As it was Sunday morning, there were others on the road who, like us, were in no great hurry to get to where they were going, be it en route to church or just on their way home. On this road, passenger vehicles proceed at 70 or 75 mph while trucks go only about 60. Passing must be done with great care as there are many bends in the road and the dashed/solid yellow lines separating oncoming traffic are not to be trusted.

Farmland and oil wells line the road for much of the way. What crops are grown is not known, but the land is mostly flat (at least compared with where the weekend was spent) and the fields go on for miles and miles on either side of the road.

Oil wells appear now and then in groups of a fifty, a hundred, or more as you proceed south toward Bakersfield - odd shaped pump-jacks appear as birds dipping their beaks while drinking water.

Most of the pumps move very slowly - up and down, up and down. The slow, regular motion powered by electric motors allows an oil and water mixture to be pumped up out of the ground and sent along small pipelines to where it can be collected and processed.

Some of the pump-jacks move more rapidly than others, but they are, by far, the exception. On looking closer out into the oil fields, many of the pump-jacks are not moving at all - a surprising number are in fact motionless. It is difficult to determine just how many of them are inactive, as so many of them move so slowly that attempting to make an assessment such as this while speeding along at around 70 mph is near impossible.

But, many pump-jacks sit there idle.

About the time we were pondering just how much oil might be coming up out of the ground from pumps bobbing up and down at different rates, another Chevy Tahoe appeared quickly in the rear mirror, only to dash off to the left, swing past us, and then out in front at what must have been, again, over 90 mph.

It had become routine at this point - in the space of about ten minutes, three Chevy Tahoes, apparently the sport utility vehicle of choice in these parts, sped past at speeds that would have many passengers fearing for their lives.

"Oh well, drive safely" we thought as the third SUV left our sight.

Just a few minutes later, amid a particularly difficult stretch of road on which to pass, and with perhaps some unlucky timing of oncoming traffic, we came upon a sight that would surely delight all those favoring more moderate driving speeds - three Chevy Tahoes stuck behind a Wal-Mart truck.

We quickly caught up to this little caravan, noticing the lead SUV crossing the solid yellow lines only to dart back behind the Wal-Mart truck as another bend in the road nixed another passing opportunity. Then when the yellow lines switched from solid to dashed, oncoming traffic presented too small a window for the Tahoe to make it safely around.

This went on for a few minutes, the lead Chevy moving out to the middle of road and then back, the other Tahoes biding their time, knowing that they would take their cue from the driver in front.

Finally, an open stretch of road appeared, the yellow lines switched from solid to dashed, and all three vehicles bounded from the constraints of the single lane, passed the truck, and were off at what must have been 100 mph, quickly vanishing from sight.

Along with the older couple in front of us, we followed the Wal-Mart truck all the way to Bakersfield at between 60 and 65 mph, sometimes doing 70, looking at the pump-jacks - most of them moving very slowly up and down, many of them still.

So, how is this little episode a metaphor for the United States and its economy in 2006?

The meaning of the fast moving Chevy Tahoes and the slow moving pump-jacks should be clear, however, the significance of the Wal-Mart truck and two passenger vehicles, the former required to travel at more moderate speeds, the latter content to - this is not so easy to interpret.

Not to worry - compared to the SUVs and the pump-jacks, the truck and the slow moving cars are unimportant.

14 comments:

Anonymous said...

Those SUV owners are living for today an mortgaging the future.

Anonymous said...

The Chevy Tahoe and GMC Yukon do seem to be the vehicle of choice for house-rich Californians in their thirties - gots to have the thousand dollar custom wheels with the performance tires though.

Anonymous said...

I hope I'm not supposed to feel sorry for them when they run into financial difficulties paying for $3 gas without all that extra home equity...

Anonymous said...

What campgroud did you stay at? I hope your vacation wasn't like alot of SC people in that they try to do the Sierra jaunts over the weekend.The Sierra range is real nice to have in our backyard when you can see them.When I applied to work for Tulare County in the early nineties the fact that the county had a national park was splattered all over the app. To bad most of the county residents haven't been up there..I know this is OT but it shows to the posters of this and other Bubble Blogs that a place is what you make of it..To often they are cruel to the Central Valley posts about are overvalued RE.. Yes it is too pricey for the jobs we have and yes we will suffer for it but what the heck we can go to the mountains....

John

Tim said...

We've been going to Quaking Aspen every year recently - it was neat to see Mineral King from Jordan Peak Lookout - looking forward to the day when we live closer to the mountains.

Anonymous said...

Maybe the Walmart truck is a metaphor for Asia/China. It's big and slow but just keeps on coming. When we run out of gas (credit), it's going to run us over.

Richard Edward Noble said...

I'll restrain myself and not get philosophical, but I have been noticing this U.S. phenomenon all my life - before there were SUVs and before $3.oo/gal gas prices.

Anonymous said...

Pump jacks are on timers. They don't pump continuously. They may be truly inactive, there is no way to tell by looking at them. I did like the imagery of your story though.

I am still in awe of how many SUVs there still are and at the amazing speeds they tend to travel at on the freeways here. I truly feel sorry for anyone who has been buying their gas on credit (i.e. equity or other RE based credit). Consumables make terrible investments (unless your in the business of producing them)

Anonymous said...

I just heard the new ads from GM on the radio -- gas for $1.99 a gallon for a year if you buy any big SUV.

Anonymous said...

I've driven from Bakersfield to Porterville a handful of times. Everytime I have been stuck behind a Wal-Mart truck. It's an inevitability.

Anonymous said...

I have another road analogy for the housing market: the passing lane.

Common knowledge is that you should never get behind the Walmart truck. You get into the other lane and make your move. Of course, if others have reacted to this situation, you may have to wait for them to pass as well.

Now at some point, perhaps ten cars, it is finally better to stay in the Walmart truck lane.

The passing lane represents conventional wisdom, and the idea that buying real estate is ALWAYS a good idea.

The backup of cars on the passing lane represents the housing bubble...the later you bought, the less advantageous it is.

The first car deciding to stick with the Walmart truck lane represents people who have decided that everyone else is nuts and will be sitting out the housing market.

Anonymous said...

That is one dangerous road and about once a month one of those Tahoes has a head on collision with a Walmart truck.

Anonymous said...

I think the biggest analogy that was lost on this diatribe was that if you get close enough behind the Walmart truck your gas milage will increase up to 20% simply by drafting.

What the analogy is to the three SUV's I do not know, but to some of the authors of post who try to see owning an SUV as a signal of American Waste and foolishness, there are many in the world who feel this way about Americans simply because they own more than one car, no matter how big.

Anonymous said...

Back in the 80's you could make a fortune growing almonds near Hwy 65 . Everyone wanted to get into the game cuz it was Easy Money. LOL. Well that ended big time. Most all the farmers, er.. speculators (dr's, lawyers, LA types, etc..) joined partnerships and lost their ASS! I would guess that 90% of the almonds were turned into firewood. Sounds like the housing market in this area.

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