Cash for clunkers, doubly expensive

[ccbatson]

Anyone realize how corrupt this stinker program is? 4K from taxpayers to dealers/buyers, the cars brought in must be destroyed [[at more cost to taxpayers), and anyone can go buy a junker for 300-500 dollars and gain a net of 4k from a vehicle already in the junk yard for a scrap yard owner to get paid by taxpayers to scrap the car[[s) they [[or someone else) already scrapped.

[Stosh]

Anyone realize how corrupt this stinker program is? 4K from taxpayers to dealers/buyers, the cars brought in must be destroyed [[at more cost to taxpayers), and anyone can go buy a junker for 300-500 dollars and gain a net of 4k from a vehicle already in the junk yard for a scrap yard owner to get paid by taxpayers to scrap the car[[s) they [[or someone else) already scrapped.

Once again a knee jerk reaction from the peanut gallery.

Car must be in your possession for at least a year, with proof.
Important Things to Know

• Your vehicle must be less than 25 years old on the trade-in date
• Only purchase or lease of new vehicles qualify
• Generally, trade-in vehicles must get 18 or less MPG [[some very large pick-up trucks and cargo vans have different requirements)
• Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
• You don't need a voucher, dealers will apply a credit at purchase
• Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
• The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.

www.cars.gov

[oladub]

Here is how it works. The US government is bankrupt so it markets bonds to Asians. Some of the borrowed money is then used to subsidize car sales. Since a higher percentage of foreign maufacturer cars are fuel efficient, much of the borrowed money will be used to purchase Japanese and Korean cars. This further upsets the balance of trade and will lead to a more devalued dollar. When this happens, it will be necessary to try to borrow more money from Asia to extend unemployment benefits to US auto workers. Meanwhile, the US taxpayers who have to pay back Asian loans to our government will have less to spend on things they want and need further chilling the economy. For good measure, the federal government ok'd the import and distribution of Chinese cars by GM before it nationalized GM. Take that American workers! If this program is extended another year, imagine how cheap the Chinese cars will be. When Asians refuse to buy more Treasuries, the Fed can just "buy back" what it prints as it has begun doing...just like Zimbabwe. Weee, this economics stuff is easy!

[jiminnm]

Good post oladub. On Jan 20 2009, the national debt was $10.6 trillion. Given current proposals, it isn't going anywhere but higher.

[ccbatson]

Details, details Stosh. The take home is that this is yet another ill conceived wasteful and corrupt government program easily gamed and abused.

Has this administration gotten anything right yet?

[Sstashmoo]

Quote: "Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first."

It's already broke according to the radio today. If congress doesn't appropriate another 2 Billion of our future earnings, this horrid waste of Chinese-backed dollars and satisfactory machinery is over. This country has went totally stupid.

[ccbatson]

I don't yet know how to deal with so many people on the same side of issues as i am...Welcome former liberals and Obama supporters.