Anyone with even a rudimentary knowledge of economic principles could have seen this train wreck coming on down the tracks so that would explain why the Obama administration went ahead with this disaster of a “cash for clunkers” program. Naturally they point to the “wild success” of this clunkers fiasco but what they fail to point out is dealers are still sitting around waiting for the millions of dollars they are owed in rebates by the federal government and the fact that it was the foreign automakers who were the big winners in this American taxpayer funded boondoggle.
The fact of the matter is many in this country suspect the clunker program was really nothing more than a short lived but helpful payback to the auto unions, who supported Obama in a big way during the last election, since it became necessary for many plants to add shifts and recall idled workers to keep up with the brief but intense demand. Unfortunately the “buzz” the clunker program created quickly wore off when “the money” (that hasn’t been paid out yet for the most part) quickly “ran out.” Interestingly the reporting on the fact that dealers are still waiting for the Obama administration to fulfill their promised (on the backs of already overburdened taxpayers) financial obligations seems to have fallen off a journalistic cliff.
I’m left wondering if we’ll soon see a wave of repossessions as many of the people who unloaded their “paid for” vehicles for $500 car payments now realize that their $9.00 an hour jobs just ain’t gonna cut it when it comes time to pay the monthly note and the much higher insurance and registration fees on their brand spankin’ new Japanese skateboard with a hood and headlights.
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