Rolfe Winkler
Option ARMageddon
House votes to give “clunkers” $2 billion more
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Earlier I expressed my displeasure with C4C. I’m unhappy to see the House has voted to expand it. Reuters:
The U.S. House of Representatives approved on Friday a $2 billion extension of the “Cash-for-Clunkers” automobile sales incentive program.
The Democratic proposal would run through September 30, 2010, and tap funds from an Energy Department loan guarantee program included in the economic stimulus package enacted in February.
An expiration date of 9/30/10 is comical. If the program keeps gobbling up $1 billion per week, another $2b won’t get us half way to Labor Day.
According to the article, the President is now fully on board:
The White House supports new funding for the program on grounds the initiative so far has provided a viable, national economic stimulus amid recession.
Earlier this week Tim Geithner promised the Chinese we were going to get serious about the deficit. I can’t imagine they’re happy financing the American auto sector…
Could there be hope that this doesn’t get through the Senate?
Already a key senator, Energy Committee Chairman Jeff Bingaman, said he opposes using Energy Department funds for the auto program.
Sounds like a technicality to me. Bingaman doesn’t want money to come from the Energy Dept., but he won’t stand in the way if the Senate finds $2 billion elsewhere.
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DUH!!! Actually put more money back into the CONSUMERS hands instead of the Wall Street bandits, and surprise, the economy is IMMEDIATELY stimulated!! Wow, those politicians are genius…….. what took them so long??
RIght on – C4C type stimulus should be used in EVERY SECTOR of the economy. Recovery will only happen if cash is put back in the hands of CONSUMERS and they SPEND IT. The public is fed up of Goldman, GM, old boys bail outs that do NOTHING but grind up the national debt…….. give everyone $10,000 in a tax rebate check and the country will turn around in 30 days. Look at Germany — C4C was the best G7 stimulus package ever.
Amazing stimulus!
You pay sales tax (most likely)
You more licence fees every year
You pay vastly more insurance
What a deal – for someone else.