I can smell the fear emanating from Washington. I'm sure the wolves can smell it too. Things aren't going well and our "fearless" leaders are starting to panic. The signs are everywhere. Everything under the sun is imploding and exploding at the same time. Fannie Mae, FDIC, Cash for Clunkers, Health Care reform, state financing, Geithner's cool. The only thing they seem to be able to control is the stock market.
As I have said before, the only thing they really have control over is Bernanke's mouse. And that poor thing is working overtime these days.
As we all know, no government program is cheap. Whatever the output, the cost of getting there is always many times higher. Remember the $600 toilet seat? Well, it seems that the $4,500 free money for clunkers is actually costing somewhere between $20,000 and $45,000 per car!
Not only that, but this program is destroying actual real-world capital in the US and replacing it with paper! They are destroying paid off, working vehicles and putting people in new cars they can't afford. You know, last time I bought a brand new car I first found the car I wanted, then I shopped around making low offers to various dealers to find the best deal. I ended up getting a $42,000 car for $36,000. That's $6,000 off! And I didn't even have to turn in my trusty old work horse. It's easy. Anyone can do it. But not right now. Not while Cash for Clunkers is going.
This program is simply free money for bureaucracy, car makers and the UAW. It is actually NET-DETRIMENTAL to car buyers and to the US economy. It will do nothing but harm to the economy. Where do you think these new cars will end up once the people who formerly had paid-off clunkers can no longer pay $400 per month for their new wheels? And right now, the used car business is crippled by this government program of free money competing with it.
This is possibly the DUMBEST program ever. How do I know? Well let's just say that certain CNBC personalities think it's great.
Anyone remember my New Stimulus Plan? It's getting closer!
We have made some serious progress on the road to you-know-where...
Man receives cash for clunker