Hello From the Middleman Economy

Source: The American Prospect
by David Dayen

“For more than a week, most car dealerships in America have been unable to sell cars, and they don’t sell a lot of branded shirts or bottled water, so it’s a pretty existential crisis. This is because of a middleman, a dealer management software system called CDK Global, that has been out of commission since June 19 because of a ransomware attack. CDK has not given a clear timeline on when the problems will ultimately be resolved. In the meantime, customers have flocked to the handful of dealerships that don’t use CDK, and other dealerships have applied spit and tape to try and fashion a temporary solution. Dealers hobbled by the hack have said it may take years to make up for the financial loss. If this sounds familiar, it is: the hack of a middleman taking down an important piece of the U.S. economy.” (07/01/24)