09-01-2009 05:07 AM - edited 09-01-2009 05:13 AM
As this crisis has unfolded I have found this guy very knowledgeable. And I know exactly where he is coming from on the clunkers program, having never owned a vehicle that would qualify as a guzzler under the cash for clunkers rules. Like him, I remember Johnny Carson jokes about gas rationing. And like him, I fall into the "ant" category: my wife and I stayed in a tiny rental (with a kitchen smaller than either bathroom in the condo we have now) for many years saving up for a substantial down payment before buying our condo in 2002.
09-01-2009 01:45 PM
i think the writer misses some of the points on why cash for clunkers was such a bad idea. gas prices aren't that high right now, so because some has an SUV doesn't necessarily mean they can't pay for the gas or were in any way irresponsible for buying the car.
the cars traded in are being destroyed. not parted out, not made available to people who can't afford a new car, not even given to charity. this flies in the face of reduce, reuse, recycle. plus it takes energy to destroy the cars.
no jobs were created. they say jobs were created but the cars sold were existing inventory.
it was a payoff. just like cash for appliances or whatever they'll call it will be to jeff immelt.
of course people will jump on a what they think is a free $3500 - $4500 which of course isn't free at all and will be lost to new car payments/interest they weren't paying before and may actually have trouble paying now. so really this isn't like home loan modifications, this is like the trainwreck that led up to them