Cash for Clunkers = Euro Technocrat Fail
As you can see if you visit the scrappage article at Wikipedia the program in the US is not hope and change, but rather just another failed program borrowed from the Technocrats in Europe.
Congresswoman Debbie Stabenow (D-MI) is fond of pointing at the German program, but if she had looked close at all, she would have seen that the German program also ran out of cash almost as soon as it was implemented. Strange that they wouldn’t have noticed that large fail in Germany that was rectified by the government spending more money to buy people cars don’t you think? This is how Democrats get monstrous programs: they advertise a nickle as the cost when the true costs are a quarter.
I pretty much expect the same to happen here: we will see an emergency declared and Congress will vote some more of your money back to the public but in a manner they choose rather than a manner you personally choose.
Why did they halt the program? The buzz says they ran out of cash or that they couldn’t process the load quick enough, but you could also speculate on other causes. Perhaps more people are buying more Toyotas and Nissans than GMs and Chryslers. Perhaps the loans are looking pretty marginal because people who otherwise wouldn’t be able to cobble together a down payment are able to now. Who knows?
UPDATE: Lawhawk reports that the house has approved more as predicted.
I favor the program continuing however. We might as well since the Euros are doing it and if we don’t we lose what really amounts to a trade war started by the Euro’s large subsidization of their auto industries the past two years.
You also need to look at Euro Technocrat’s past interference in the auto market in pursuit of ecology for what might be next from our Technocrats and Czars.
Here’s a lecture from an expert who’s pretty convinced that the shortage of light sweet crude we’ve seen the past two years is a combination of Euro environmental regulations & incentive programs driving Euros to diesel coupled with Saudi market interference.