Friday, August 21, 2009

Buy New Cars... No Wait Don't

After people started taking advantage of the Cash for Clunkers program the Government has decided to.... Scrap the program.


Let's be frank about this stuff. This was a simple trade in program. Every car dealership in every state in every county in every city in every town does this all day everyday. The weakest greenest worst used car salesman in the country does this all day everyday. The government couldn't handle it for six months.

Why? Let's use President Obama's favorite word, sustainable. The program overpaid for cars, then destroyed them. Nobody made any money. For every car that was "purchased" for 2 to 4 thousand dollars, another 1 to 2 thousand was spent to destroy it. No wonder the program failed. It was simply not sustainable. You have to have some money coming in on the other end. Have to. Otherwise the doors close.

This is the same group of people who say they can do a better job than your insurance company. Basically the health insurance reform public option uses the same model.

Wake up.

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