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Now what I laugh about is that the same people who whine about the Dems' spending also seem to think that the Dems won't get money to pay these dealers back for this program... Somehow that seems like a paradox to me.
Where exactly did you think the Democrats are going to get the money to pay those dealers back for this program? Are you that removed from reality that you cannot comprehend that taxpayers are paying for this illegal government subsidy?
One of the things that CARS highlights is that people cannot afford things unless given substantial subsidies.
So we now have:
1. $8,000 (soon to be $10,000 and proposed $15,000) housing stimulus;
2. $4,500 (soon to be more, no doubt) auto stimulus;
3. 0% cash for banks to support lending
4. Billions to support state and local agencies (check your local paper to see how much stimulus money is going to your schools and police departments to float them).
What’s the lesson kids? We’re spending waaaay beyond our means and unless Uncle Sam supports our lifestyles we will not be able to continue living as we have the past 15 years.
I don’t care what any economics pundit or government bonehead says: this is mathematically unsustainable. Further, the damage it does to the country’s psyche is going to be brutal.
Watch what happens when the car makers raise prices or reduce incentives as suply shrinks and they decide to offset some of that federal stimulus and funnel it their way: sales will drop like a rock as consumers pull back again. Time and time again this has happened - see the price of college tuition the last 20 years if you want an example: as government subsidies and loan backing increased the demand for college, colleges turned right around and increased prices because they could (knowing that the government would simply boost the amount they would make available/guarantee).
Further proof? Look at Fannie Mae and Freddie Mac: with government guarantees and cheap money they ran amok to the point where they’ve essentially detonated the system.
Worse? Everyone now thinks: Hell, it’s my money, I should get in on the game too. I don’t want to be the last sucker standing. Now that this attitude has become prevalent, Big Brother has won and we are all beholden to him.
Just wait until healthcare passes - once the masses rely on Uncle Sam for that, they’ll never say no to government.
this is the party part of the spending. we get to run up the charge card and everybody is temporarily happy. watch how sullen everyone gets when the credit card bill comes due.
Try to follow genius.... You're attempting to blame the Cash for Clunkers program for potentially poor financing decisions....
Hey, if a bank or dealer finances these people, it ain't the program's fault...
This entire conservative talking point goes back to one thing...talking points. Anyone that has attempted to get a car loan from any of the Top companies know how HARD it is, especially now. You can not go into GM, Ford, Lexus or Honda, getting a weekly McDonalds check looking to finance one of their top sedans or SUV's.
One of the main reason for the backlogs have to do with the credit checks. Many of customers do not qualify for financing or they have to put down a larger deposit or need a co-signer.
Its best to think for yourself or do your own research instead of following the masses and their talking points.
One of the things that CARS highlights is that people cannot afford things unless given substantial subsidies.
Ah, no.
Saving rates are at an all time high. The problem isn't cash on hand, the problem is the lack of spending.
While savings rates need to encourage, there is a time and a place, this is neither the time nor the place unless you would like to continue a downward spiral on consumer demand.
Cash for Clunkers is a smoke screen tactic. More of the same that got us in this mess. Give money to people who otherwise couldn't afford a new car to turn in a perfectly good car (they will not take cars that don't run) so that the buyer can take on debt he/she can't afford. The "green agenda" is a load of crap. Many of these newer cars don't get much higher mileage than the older ones, and if we're so concerned about overflowing landfills, waste, and promoting economy and not trading in things every so many years, then this program has its unintended consequences. And let's not forget that we didn't have the money before they gave it to the program. I mean, where did it come from? It was supposed to go through November and it's run out already? So let's throw 2 billion more we don't have to artificially inflate the auto industry. This isn't creating anything long term (except debt). Let's just have the govt pay us to buy all kinds of stuff. What a joke.
Spot on! I just posted this in another thread:
Cash for Clunkers consequences - obviously, the plan wasn't thought through to the logical conclusions:
"To date an overwhelming percentage of the people taking advantage of this program have traded vehicles that were free of encumbrances. Now they are in bondage, trapped into making payments during a time of great economic uncertainty. A number of the vehicles being traded in are in amazing condition. So, through this program we now eliminate a large segment of the used car market, vehicles that could be sold in the $3,000 to $6,000 range to those on tighter budgets.
Saving rates are at an all time high. The problem isn't cash on hand, the problem is the lack of spending.
While savings rates need to encourage, there is a time and a place, this is neither the time nor the place unless you would like to continue a downward spiral on consumer demand.
The Wall Street Journal suggests that the 70% of economic growth that's driven by consumer spending is shifting into reverse. High, middle, and low income consumers are cutting back their spending.
Lower and middle income consumers are selling their gold and using pawnshops to pay their bills as food and energy prices hit record levels.
Isn't spending what got us in this mess in the first place?
Where exactly did you think the Democrats are going to get the money to pay those dealers back for this program? Are you that removed from reality that you cannot comprehend that taxpayers are paying for this illegal government subsidy?
<sigh> Follow along..... The complaint I was addressing is that "Dealers are scared they won't get their money." ... Thank you for proving to everyone that they will....
Cash for Clunkers consequences - obviously, the plan wasn't thought through to the logical conclusions:
"To date an overwhelming percentage of the people taking advantage of this program have traded vehicles that were free of encumbrances. Now they are in bondage, trapped into making payments during a time of great economic uncertainty. A number of the vehicles being traded in are in amazing condition. So, through this program we now eliminate a large segment of the used car market, vehicles that could be sold in the $3,000 to $6,000 range to those on tighter budgets.
Completely missing the point that part of the purpose of this program is DESIGNED to get these cars off the road to promote those with better gas mileage....
This entire conservative talking point goes back to one thing...talking points. Anyone that has attempted to get a car loan from any of the Top companies know how HARD it is, especially now. You can not go into GM, Ford, Lexus or Honda, getting a weekly McDonalds check looking to finance one of their top sedans or SUV's.
One of the main reason for the backlogs have to do with the credit checks. Many of customers do not qualify for financing or they have to put down a larger deposit or need a co-signer.
Its best to think for yourself or do your own research instead of following the masses and their talking points.
Exactly.....
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