Did you hear that they almost ran out of money for the CARS program (aka Cash for Clunkers)? Of course, now the government has added another 2 billion dollars to the program (a total of 3 billion for those keeping score), so the program can go on.
While I admit I do not know all the details of the program, I am not in favor of it. As I have read a couple of articles about the program, some questions have come to mind: how many people are buying new cars who cannot afford them? Who is going to make up the money when these people default on their loans? How exactly is this going to stimulate the economy? Where exactly is this money coming from? Why is it such a bad circumstance that car sales are lower than they were a few years ago when the economy was in better shape? What is wrong with experiencing a little failure? Doesn't experiencing failure teach us to do better in the future?
1 comment:
I think you are right, we are going to get to look forward to more defaulted loans, and the banks hurting more as a result.
And you are RIGHT on about failure. These companies could have fallen, and risen stronger, or replaced my another.
Oh man, what is the congress getting us into? I don't think we are going to recognize the US soon. But maybe we will all emerge stronger - as long as people are paying attention.
-cherish
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