On Thursday the Obama gang put on the brakes to the extremely popular "cash for clunkers" program. The White house had set aside $1 billion for new auto purchase rebates, which has been doing so well officials are concerned the funds have been already exhausted. The program had just begun last Friday.
The CARS program had been offering owners of older, fuel inefficient vehicles rebates of $3,500 to $4,500 towards the purchase of a new more fuel efficient car or truck.
As of late Wednesday, a whopping 22,782 vehicles had been sold through the program and nearly $96 million had been spent. But dealers began getting concerned about backlogs of the processing of the deals in the government system, which prompted the suspension.
To me, unless my math is wrong, it seems there is still $900,000,000 to spend towards the rebates. It seems as if an economy boosting program is finally working and they want to pull the plug. If they set aside a billion to spend then they must have expected to spend it. Right? Even if the entire billion is spent in a week who cares? Whether 200,000 cars are sold in month, week, or day, a total 200,000 cars are still being sold. I just saw an interview on the news with an auto dealer whose sales were up 30% this week. If the program is working why should they stop? I know of a owner of carpet sales company who refused to sell his entire inventory to a gentleman stating, "If I sell my entire inventory I won't have anything to sell to anyone else." Who cares? If you are selling to one or all it is the same.
I don't get it. It's like it's all bologne. They tell us they are going to do this and that and then stop when something works. Am I crazy or does any one else think putting the brakes on a program that is taking off and really helping out the auto industry BS?
2 comments:
Great article and it does make you wonder what the government is doing with the extra money. There is a lot of redtape and the government regulations are stalling the sales. Very few of the submissions for new car purchases actually make it through the criteria. So all we have is more confusion based on government programs.
The administration promised transparancy, but nothing seems to be that way. There are always to many questions on what's going on with these plans and our money. Look up the documentary "History of the Federal Reserve" on youtube. It's very interesting to see how the Federal Reserve and banks control things and have caused this situation before over and over again.
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