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Cash For Clunkers


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Also the true problem with the cash for clunkers program is the same on that caused the housing market problem.

 

If you couldn't afford a new car before guess what you still can't. People forget that while the $4500.00 credit seems great, you'll be paying higher insurance, higher tag cost, higher upkeep.

Cash for Clunkers didn't change loan underwiting or lax the potential credit risk of potential buyers. Yeah $4,500.00 is great, but people will still have to be qualified for loans in the $15-$20 thousand range. This is a program to get them in the door and isn't forcing lenders to get these people in the cars.

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Also the true problem with the cash for clunkers program is the same on that caused the housing market problem.

 

If you couldn't afford a new car before guess what you still can't. People forget that while the $4500.00 credit seems great, you'll be paying higher insurance, higher tag cost, higher upkeep.

 

The Deregulation of the Banks under Clinton started the housing fall.

The thing about houses is, that they became overinflated and were overvalued for quite some time.

But I agree this is not the way to go with the Cash for Clunkers, if we were out of the defecit, I would not mind it but we should be focusing on the 1.9Trillion of Securites that China owns and try to get those down. how much further in debt can we get?

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