'Cash for Clunkers' Runs Out of Gas ~ Oops, generous taxpayers re-filled the tank.

[peaceandlove]

'Cash for Clunkers' Runs Out of Gas
JULY 31, 2009
The Wall Street Journal

By MATTHEW DOLAN, COREY BOLES and JOSH MITCHELL

White House officials and lawmakers were studying late Thursday how to keep alive the government's cash-for-clunkers incentive program because of concerns the program's $1 billion budget may have been exhausted after just one week.

Obama administration officials warned congressional leaders Thursday it planned to suspend the program at midnight. But the White House released a statement late Thursday saying that completed deals would be honored and the program is still under review.

A White House official said, "We are working tonight to assess the situation facing what is obviously an incredibly popular program. Auto dealers and consumers should have confidence that all valid [cash-for-clunker] transactions that have taken place to-date will be honored."

Lawmakers are discussing with White House officials where to find funding -- including possibly tapping the government's Troubled Asset Relief Program, or TARP, a congressional aide said.

Continues with Comments: http://www.campaignforliberty.com/wire.php?view=6742

[peaceandlove]

This appears to be similar to the Food Stamp program where you must allow the government access to your computer when you apply online.

Similar also to the income tax stimulus program agenda to flush non-taxpayers out of the system.

Glenn Beck and Jonah Goldberg:

"Cash For Clunkers is a government scam to gain access to your computer"

Posted by rgsoundguy on 08/01/09 12:13 AM

VIDEO (5:35): http://www.youtube.com/watch?v=mqfuZ...layer_embedded

SOURCE: http://www.campaignforliberty.com/blog.php?view=22890

[Tango]

Wow... Its a gotch ya....

The system locks you in... Thanks, Glen Beck...

Tango

[peaceandlove]

Looks like "Cash for Clunkers' has been re-fueled!

House approves $2 billion more for Cash for Clunkers program

By Kim Nguyen, Staff Writer
(Created: Sunday, August 2, 2009 8:59 AM CDT)

The U.S. House of Representatives passed a bill Friday afternoon allowing another $2 billion to fund the Cash for Clunkers program, which offers tax credits to those who trade in old cars for newer, more fuel-efficient models.

Continues: http://www.campaignforliberty.com/wire.php?view=6773

[peaceandlove]

Cash For Clunkers – Pillaging the Taxpayers

Posted by erichilliard on 08/01/09 5:30 PM

My letter to the editor (Jackson Citizen Patriot)...

How nice of a person are you? Would you be willing to do this for example... Picture yourself going to your next-door neighbors house and knocking on their door. Picture yourself offering to take out a loan for them so they can have a new car. Picture yourself paying the interest on that loan over time so they have the privilege of driving their new car. Are you nice enough to do that for your neighbor? How about a stranger? Me neither.

Unfortunately for us we don't have a choice, and that is exactly what is happening with the Cash for Clunkers program as supported by Congressman Mark Schauer. Not only did he vote in favor of the $1 billion dollar bill the first time, but he voted in favor of the $2 billion dollar increase also. But where does the money come from?

The money to fund the program is being borrowed from foreign investors and we as taxpayers are going to be responsible for repaying the loans along with the interest. So whether it is your neighbor who bought a new car, or a complete stranger you don't even know, you're going to be paying the principle and interest on an auto loan (a $3 billion dollar auto loan) that was used to help purchase their car.

I'm sure Congressman Schauer has a response of how this was necessary to help the auto industry. But didn't we already give them billions of dollars to prevent them from going into bankruptcy? That didn't work out as planned with GM and Chrysler both filing for bankruptcy, and yet our representatives in DC continue to say, "Trust us."

At least someone is willing to tell the truth. A puppet version of Mark Schauer speaks the truth at http://www.politicalpuppetshow.com/videos.html We should listen. Or on youtube: http://www.youtube.com/watch?v=7IpQZ...layer_embedded

Source: http://www.campaignforliberty.com/blog.php?view=22916

[Humble Janitor]

Originally Posted by peaceandlove

This appears to be similar to the Food Stamp program where you must allow the government access to your computer when you apply online.

Similar also to the income tax stimulus program agenda to flush non-taxpayers out of the system.

Glenn Beck and Jonah Goldberg:

"Cash For Clunkers is a government scam to gain access to your computer"

Posted by rgsoundguy on 08/01/09 12:13 AM

VIDEO (5:35): http://www.youtube.com/watch?v=mqfuZ...layer_embedded

SOURCE: http://www.campaignforliberty.com/blog.php?view=22890

Beck's a skilled disinfo artist. Creating conspiracies where they don't exist.

It's hard to argue against this program when it has helped automobile dealers, who in turn employ Americans.

[peaceandlove]

Taxpayers, get ready to dish out some more money for other people to drive new cars.

You do realize that this is coming out of the Taxpayer's pocket!!!



'Clunker' sales nearing quarter-million; what now?

By KEN THOMAS, Associated Press Writer – 12 mins ago

WASHINGTON – The White House warned Monday that the "cash for clunkers" program, already zooming toward a quarter-million trade-ins with the initial $1 billion in rebates, could sputter to a stop by Friday unless the Senate quickly approves $2 billion more.

While Republican lawmakers complained about another government giveaway, the Obama administration pointed to environmental gains made during the first week of the program that gives rebates of as much as $4,500 to motorists who trade in gas guzzlers for more fuel-efficient vehicles. The White House also highlighted recovery news from Ford Motor Co., which reported its first U.S. sales increase in nearly two years.

That won over some Democrats who had grumbled the program wasn't wringing out enough fuel efficiency. They complained that smaller rebates of $3,500 were going to people buying new cars that get as little as 4 more miles per gallon than the gas-guzzling clunkers they traded in.

But many Republicans remained skeptical, and Democratic leaders were uncertain they could get a favorable vote on a House-passed $2 billion extension by week's end, when the Senate begins a four-week recess.

"If it doesn't happen this week, it's unlikely that we'll make it to the weekend with a program that can continue," President Barack Obama's spokesman, Robert Gibbs, told reporters. He estimated the additional $2 billion would allow consumers to take advantage of the incentives through September.

Continues and VIDEOS: http://news.yahoo.com/s/ap/us_cash_for_clunkers

[peaceandlove]

What A Waste (Cash For Clunkers)

Monday, August 3. 2009
Posted by Karl Denninger

So we spend $1 billion and what do we get? http://www.marketwatch.com/story/for...-23-2009-08-03

SAN FRANCISCO (MarketWatch) -- Ford Motor Co. said Monday that U.S. July sales rose 2.3% to 165,279 vehicles, reversing nearly two years of monthly year-over-year losses.

Ok. So for $1 billion Ford managed to sell 3,801 more vehicles this month compared to last year's number, and now is pushing a roughly 2 million unit/year run rate.

Hmmmm...

In addition to this (tiny) impact over last year, we have done the following:

Removed more-guzzling cars from the road and replaced them with less-guzzling (good).
Significantly shifted the sales matrix toward smaller, more efficient - but far less profitable vehicles (not so good.)
Taken someone who had a paid-off car and thus no auto debt (good) and replaced that with someone who now has a huge car payment on a vehicle worth less than the loan amount the instant they drive it off the lot (bad).
Destroyed the engine (the most valuable part) of that older vehicle, thereby trashing the business of both used car lots and automotive recyclers and used parts dealers (very bad.)

A good idea? Well, I suppose if the intent is to try to get Americans to be more of a debt slave when they're already choking on too much debt.......

But net-on-net for the economy? Assuming gas goes to $5/gallon (and if crude's move of late, doubling in the last few months, is any indication that's exactly what we'll soon be seeing) and presuming an average purchase price of $20,000, ignoring finance charges (hah!) we're talking about 4,000 gallons of gasoline.

If the average clunker got 15 miles per gallon the driver of said clunker would have to put an additional 60,000 miles on it before he paid just the principal on that note.

That's a very nice debt trap you crafted there Mr. President, and utterly unsupportable on the economics.

SOURCE: http://market-ticker.denninger.net/a...-Clunkers.html

[peaceandlove]

"Cash for Clunkers" Hurts the Poor

Posted by Matt Hawes on 08/03/09 11:49 PM
Last updated 08/03/09 11:51 PM

In his latest C4L video, Dr. Paul discusses the true effects of the "Cash for Clunkers" program and talks about how government intervention into the economy will only make things worse.

VIDEO (4:04) and SOURCE: http://www.campaignforliberty.com/blog.php?view=23041

[peaceandlove]

'Cash for clunkers' money could dry up by week's end

Even though the House voted to triple the budget for the `cash for clunkers' program, Republicans in the Senate refuse to go along, saying the government can't afford it.

Posted on Monday, 08.03.09
The Miami Herald
BY DAVID LIGHTMAN
DLIGHTMAN@MCCLATCHYDC.COM

WASHINGTON -- WASHINGTON Republican opposition is stalling Senate efforts to keep the popular "cash for clunkers'' program alive.

The program, which gives up to $4,500 to consumers who trade in old gas-guzzlers for more fuel-efficient models, is likely to end by the weekend unless the Senate approves additional funding.

Senate Republican leaders railed against it Monday, calling the program a model of government inefficiency and out-of-control spending. The program originally received $1 billion, but all but exhausted that funding last week, its first. The House of Representatives approved another $2 billion on Friday, but the Senate is balking.

"We were told this program would last for several months. As it turned out, it ran out of money in a week, prompting the House to rush a $2 billion extension before anybody even had time to figure out what happened with the first billion,'' said Senate Republican leader Mitch McConnell of Kentucky.

President Barack Obama plans to meet with Senate Democrats on Tuesday at the White House to discuss several issues, including keeping "cash for clunkers'' alive.

White House press secretary Robert Gibbs explained the stakes: "If it doesn't happen this week,'' he said of Senate action, "it's unlikely that we'll make it to the weekend with a program that can continue.''

It's easy for a small group of senators to exploit Senate rules to delay action.

Republican senators are trying to tie the car program's troubles to controversial proposals to overhaul healthcare and Obama's stewardship of the economy.

"There's a pattern here, a pattern that amounts to an argument -- and a very strong argument at that: When the administration comes bearing estimates, it's not a bad idea to look for a second opinion,'' McConnell said.

While the auto program appears to be popular, polls show rising public wariness of big free-spending government, and Republicans are seizing that political ground. In the July 22-26 Pew Research Center survey, Obama's approval rating dropped 7 percentage points since June to 54 percent. The public's approval of his handling of healthcare, the economy and the federal deficit also dropped significantly.

As a result, it's unclear whether people will see an extension of cash for clunkers as another example of worrisome big government expansion or of government responding helpfully to an important need, said Michael Dimock, a Pew Research Center associate director.

"We just don't know,'' Dimock said.

"Management of cash for clunkers does call into question how all these other government programs are being run,'' said Brad Coker, the managing director of Mason-Dixon Polling & Research in Jacksonville. People could see the clunker program as another reminder that "Obama's never run anything,'' Coker said.

The GOP is convinced that it can get some political mileage out of stalling. Under Senate procedures, Republicans can delay the bill until at least Thursday, and perhaps longer, even if senators are able to cut off a filibuster.

Sen. Jon Kyl, R-Ariz., the Senate's second-ranking Republican, said Monday that ``I don't care about the political risk. I'm concerned about the process and about how the government is going to pay for this . . . $4,500 is a lot of money to give somebody to buy a car who was already going to buy a car.''

Transportation Secretary Ray LaHood pushed back hard on Monday, appearing on TV talk shows and sending senators a "fact sheet'' claiming that the program had "succeeded beyond anyone's expectations.''

Among its boasts: The average fuel economy of new vehicles bought under the program is 25.4 miles per gallon; the average mpg of trade-ins was 15.8, a 61 percent improvement. The change should save the typical consumer $700 to $1,000 annually in gasoline costs.

The program's success so far won over some initially skeptical senators on Monday. Sens. Dianne Feinstein, D-Calif., and Susan Collins, R-Maine, had said it should do more to promote the purchase of fuel efficient vehicles, but after seeing the Transportation Department data, they said that they would back additional funding.

Helping the lobbying blitz is the National Automobile Dealers Association, which sent a "legislative alert'' to its members.

"It is critical that you contact your senators and urge them to support the cash for clunkers provision without amendment,'' the NADA alert said.

Dealers are increasingly worried that they won't be reimbursed under the program. NADA Chairman John McEleney warned that "until further definitive guidance on the availability of funding is provided by the administration, dealers who accept additional `clunkers' deals may face a risk that they will not be reimbursed.''

Source: http://www.campaignforliberty.com/wire.php?view=6803

[peaceandlove]

How to Avoid the ‘Cash for Clunkers’ Snarl

When car dealers start doing business with the federal government, whaddya expect? Perfect harmony?

VIDEO: Some dealers stopped Cash for Clunkers program August 18th, 2009
http://www.kmov.com/video/localnews-...ml?nvid=390368

By Rick Newman
Yahoo

Of course not. Several weeks into the "cash for clunkers" program it turns out that delivering a couple of billion dollars worth of rebates to hundreds of thousands of car buyers can generate a few flat tires. The Department of Transportation's latest update on the Car Allowance Rebate System shows that the government has received applications for about 412,000 rebates totaling $1.7 billion. But so far, the feds have approved only a fraction of those, leaving dealers furious.

The Transportation Department won't say exactly what the rejection rate is, but in an Automotive News survey, some dealers said up to 80 percent of their rebate applications had been rejected. Some dealers are waiting for payments totaling as much as $200,000, the survey found. About 13 percent of dealers said they've suspended clunker deals because of red tape and concern about getting paid by the government.

Continues: http://autos.yahoo.com/articles/auto...lunkers-snarl/