The Obama administration plans to end the popular $3 billion Cash for Clunkers program on Monday at 8 p.m EDT, the Department of Transportation announced Thursday.And that's actually a valid argument and always has been, and it's a fair compromise to end the program Monday. There had to be an exit strategy for the plan, and after all, Congress isn't in session to approve more money anyway.Two congressional officials familiar with the plan say the Transportation Department will wind down the program that offers car buyers rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models. The officials spoke on condition of anonymity because they were not authorized to speak publicly about the plan.
The Obama administration was set to announce details on Thursday.
Meanwhile, the financial arms of several automakers have begun offering help to cash-strapped dealerships, in some cases by floating loans to help cover clunker-related shortfalls.
Department officials met with car dealer trade groups on Wednesday to discuss how the program will eventually end and respond to complaints over a backlog of rebate payments to dealers.
Through early Wednesday, auto dealers have made deals worth $1.81 billion and are on pace to exhaust the program's $3 billion in funds in early September.
The incentives have generated more than 435,000 vehicle sales but dealers want a clear plan on when the rebates will no longer be available so they don't end up on the hook for any of the incentives.
Take the victory and go. Works for me.
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5 comments:
For his next trick Obama will go break windows at random across the country and claim the resulting repairs as an increase in economic activity.
http://ow.ly/kLIL
Ahh yes, the famous "broken window" theory that stimulus money spent is never stimulus.
Only it was Bush who broke the system to near systemic collapse. What's your argument, that we should have done nothing?
You know, I get it. You hate Bush. Now pull your head out of your ass and start thinking clearly about economics.
You're actually close to understanding if you'd think through the logic of your rants about restoring the bubble. Like your "Once You Pop, You Can't Stop" post.
The problem is inflation and we're trying to solve the problem with more inflation. It's like trying to cure a hangover by drinking a bottle of vodka.
There is an answer. Stop inflating our money. Stop the fed from driving interest rates below market levels. Stop the banks from loaning money that hasn't yet been saved.
Good…, as they say, all good things come to an end. Actually, this could be considered a BAD thing b/c it’s CRAZY, we are giving people money to live more vicariously and lavishly than before all this economical bust took place? What are we doing? Spoiling every single last American? Let’s learn to live in moderation, then we wouldn’t have so much debt…Well, the fish sticks from the head..so the head is the While House…right?
You could consider the head of the economy in the Fed as well.
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