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Old 07-31-2009, 05:39 PM
 
Location: San Diego, CA
10,581 posts, read 9,277,611 times
Reputation: 4167

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Government planning and efficiency at its best... again.

This week the Federal government proved it can't handle a straightforward payment program for people's old cars. In what may be a record, the U.S. government shut down its "Cash for Clunkers" program only five days after it started, saying they had run out of money. They started with $1 billion. It's gone.

Next month, they intend to take over the health care industry in the U.S. (1/6 of the country's entire GDP) and run that.

Do you still think that's a good idea?

---------------------------------------------------------------

Government Suspends Popular 'Clunkers' Program - wcbstv.com (http://wcbstv.com/consumer/cash.clunkers.success.2.1108544.html - broken link)

Government Suspends 'Clunkers' Program

Jul 31, 2009
by Lou Young

NEW YORK (CBS) ― "Cash for Clunkers" came to a screeching halt Thursday, after only six days on the road.

In a shocker, the government announced it would suspend the program at midnight because demand was too great.

It may have been the best $1 billion the government has spent so far this year. Business was humming at Crestmont Toyota/Volkswagen Thursday night as salespeople rushed back to work on news that the government's "Cash for Clunkers" program was being suspended. It's the deal where you get up to $4,500 for your older low mileage beast if you buy a new car with more efficient fuel consumption.

On Thursday night we learned the program was only good until midnight, all because of a backlog of red tape. So the salespeople were trying to get their deals through the government's Web site. "People are loving it. It's wonderful. It's a great stimulus package," salesman Andy Beloff said. But when asked if the government was running the program well, Beloff said, "No. No."

The dealership's lot had roughly 40 clunkers waiting to be shipped to the junkyard. Each one has already been replaced by a brand new lower mileage car. The program only started last Friday. It's a victim of its own success. But the money may be running out faster than anyone imagined. With almost 23,000 deals already processed and tens of thousands more in the pipeline, it's possible the $1 billion allocated for the program might have already run out and into the pockets of people like Christie Acosta, who knew a good deal when she saw one. "I had a 1987 Ford Explorer. We had it for a while and I was ready to get rid of it," Acosta said.

For the economy it's good news, but the government's miscalculation has some a little nervous. "These are just the deals we have to submit tonight," Crestmont president Bill Strauss said while holding a stack of papers. He said the dealership has over $100,000 on the table.

"If they can't administer a program like this, I'd be a little concerned about my health insurance," car salesman Rob Bojaryn said.


(Full text of the article can be read at the above URL)
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Old 07-31-2009, 05:41 PM
 
Location: Honolulu, HI
5,638 posts, read 6,124,404 times
Reputation: 7203
ZZZZZZZZZZZZZZZZZZZZZZZZZZZ!
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Old 07-31-2009, 05:47 PM
 
Location: San Diego, CA
10,581 posts, read 9,277,611 times
Reputation: 4167
Late news: Congress is working on a plan to resurrect the "Cash for Clunkers" program. They plan to pour more money into it, tripling its budget by borrowing an additional $2 billion and pouring it into the program.

At the present rate, that should keep it going another ten days, maybe twelve.

When government Health Care starts running out of money (ever see a government program that didn't?), what solution will Congress come up with? Will they triple that program's budget too? Or start cutting back on care (aka "rationing")? Or maybe some of both?
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Old 07-31-2009, 05:49 PM
 
19 posts, read 30,853 times
Reputation: 15
Quote:
In a shocker,
...cut me a break
Quote:
the (clueless, bungling, incompetent, wasteful, provacative) government announced it would suspend the program at midnight because demand was too great.
Demand was too great?

Nobody saw that one coming did they? If they think the demand was too great for old beat-up cars then just wait until free health care is announced! But maybe that is just what they want.

If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand.
Milton Friedman

Last edited by papa coldone; 07-31-2009 at 06:07 PM..
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Old 07-31-2009, 05:50 PM
 
27,620 posts, read 19,902,589 times
Reputation: 11079
It didn't go bankrupt. They just did better than expected because it is a great idea and they allotted only a certain amount. They are going to extend the program.

‘Cash for clunkers’ drives up car sales

It’s a win-win,” said Steve Rennells, sales manager at Head Motor Co. “It’s taking some high-mileage, low-quality vehicles off the highway and getting folks into better, more fuel-efficient cars at a more reasonable rate than what they normally could do.”

‘Cash for clunkers’ drives up car sales - ColumbiaTribune.com

House approves extending ‘cash for clunkers’
Lawmakers pass $2 billion bill to keep program alive; will go to Senate


House approves extending ‘cash for clunkers’ - Autos- msnbc.com
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Old 07-31-2009, 06:03 PM
 
19 posts, read 30,853 times
Reputation: 15
"Order more ink! We gotta a lot of printing to do!"
ben bernanke
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Old 07-31-2009, 06:09 PM
 
Location: San Diego, CA
10,581 posts, read 9,277,611 times
Reputation: 4167
Quote:
Originally Posted by sickofnyc View Post
It didn't go bankrupt. They just did better than expected because it is a great idea and they allotted only a certain amount. They are going to extend the program.
Oh, I get it. Well, that makes all the difference, doesn't it?

I guess I need to rephrase, to conform to sickofnyc's Newspeak:

When government Health Care does better than expected because it's a great idea and they allotted only a certain amount (ever see a government program that didn't run out of money?), what solution will Congress come up with? Will they triple that program's budget (now known as extending the program) too? Or start cutting back on care (aka "rationing")? Or maybe some of both?

There, how's that?
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Old 07-31-2009, 06:28 PM
 
4,921 posts, read 7,268,501 times
Reputation: 5461
It is still tax payer money that will work it's way to the top of the auto industry where the CEO's and top exec's can pat themselves on their backs for the work of others and give themselves millions in bonus's and perks.
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Old 07-31-2009, 06:38 PM
 
4,585 posts, read 5,243,441 times
Reputation: 942
Quote:
Originally Posted by donsabi View Post
It is still tax payer money that will work it's way to the top of the auto industry where the CEO's and top exec's can pat themselves on their backs for the work of others and give themselves millions in bonus's and perks.
The point of the program is to get gas guzzling air polluting hoopties off the road. It's actually a boon for the economy. They'll sell more cars which will create/save jobs. Yeah, greedy execs will take their cut but nothing is perfect.
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Old 07-31-2009, 07:05 PM
 
Location: Irvine, CA to Keller, TX
4,829 posts, read 6,627,362 times
Reputation: 844
Quote:
Originally Posted by Tank1906 View Post
The point of the program is to get gas guzzling air polluting hoopties off the road. It's actually a boon for the economy. They'll sell more cars which will create/save jobs. Yeah, greedy execs will take their cut but nothing is perfect.
It is just as bad as the Democrat led sub-prime. I am sure that Fred who makes $20,000 a year and drives the 20 year old clunker worth $500 for parts can really now afford that $500.00+ new car payment. Give me a break! Look into the details of the program, it is just a way to give out cars that will be repossessed in less than a year.
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