Do you think Cash For Clunkers Program is good? (usa)

I think it's a very bad idea. People who have a perfectly good car that is paid for will now be taking on new debt. The thinking is beyond my understanding, getting people to take on new debt when most of us can barely handle that which we have now. The government is trying to spend the nation out of debt and look what it's done, our great grandchildren will spend their lives paying that debt. Now it wants us to increase our debt. In addition, it's destroying perfectly good cars that people of modest means could possibly afford. Now they won't have cars that they can afford because they've been junked. This administration hasn't done ANYTHING that is reasonable or prudent so far. In fact, it's destroying this nation in a way that couldn't be more effective if it was planned that way--and maybe it was!

First, you have to understand that "cash for clunkers is not JUST about the auto industry. As far as the auto industry goes, it is designed to give DEALERS (not Manufacturers) a boost during the recession we are going through. Most of the vehicles that qualify to be bought under this program are not even BIG 3 vehicles. It is also a way for people who have gas guzzlers to get a new vehicle that will use less gas. This means less money going out of household budgets for fuel. Less fuel being bought also makes the overall demand for fuel lower which will hopefully keep gas from going over $4 per gallon again. "why do all those "clunkers" need to be destroyed anyways? Sounds silly, atleast parts them out or recycle them as much as possible before destroying the whole vehicle" - The engine is the only part that HAS to be certified as being destroyed that is why they have to pour acids into the engine BEFORE shipping them to the salvage yards (recylclers). So many of them are being turned in that there is a GLUT (overabundance) of used parts making "parts them out" impractical for more than a few of them - in other words - too many parts and a lot fewer clunkers out there to need the parts. "recycle them" - they are. The crushed clunkers are being shipped off to be melted down But, they can ship a lot more of them if they have been crushed; because they can fit 4 crushed vehicles in the same amount of space as 1 uncrushed vehicle. Also, destroying the vehicles gets them off the road permanently. Other countries with "cash for clunker" programs ran into a problem "environmentally". Germany started it's program to reduce fuel needs and get polluting vehicles off the road; but, they did not require the vehicle being destroyed. So, the dealers collected the money from the German government and then they started selling these clunkers to other countries where they were put right back on the roads. German dealers were making money on both ends of the deal and the clunkers were still out there guzzling gas and polluting the environment (just not in Germany). Then, the countries where they were being sold started complaining that Germany was "dumping" them on poorer countries. Personally, I do not think too much of any of Obama's programs; but, at least this one does make a small difference to a lot of people (dealers, salesman, recyclers, and the car buyers) and it does not make the environment worse off. At this time the cost is only 3 billion NOT hundreds of TRILLIONS of dollars like he gave away to bailout the auto, financial, and insurance industries with NO visable benefit EXCEPT to the executives of those companies who got multi-million dollar bonuses.

I agree with you on all that you said. I have told plenty of people that I dont understand why they dont part out the vehicles. I have also wondered what happens when things get worse (if they do) and people cant pay the payment on that vehicle? Some I think jumped at it because they do have clunkers and gas is expensive as it is. So they are thinking, better running vehicle that cost less. Some arent thinking into what ifs. I really think that there is a lot more that could have been done with the money spend on that program, but then I think that with alot of these stupid programs that have been passed!

i can't get past the fact that they're using money they already took from us in a way earlier in the year..it makes me feel we're paying for that twice in a way first for the whole stimulus plan and then for the car i hadn't planned on buying up unto that point(granted people don't have to trade it in..but if they do..). now,what's gonna happen if these people who took the incentive for the cars can't pay the remainder off for whatever reason later? isn't this kind of how the housing loan industry got messed up? i don't drive anyway so i won't be buying,but..i don't know..it sounds like a bad idea to me.

I don't have an opinion on it since I don't have car but my mother don't like it since she couldn't trade in her car. She thinks the government is throwing money away when they're already in debt and there are so many programs out there lacking funding. I guess we'll have to wait and see how much this program actually helps.

you make some good points here. This is true, alot of people are more enclined to take a wage cut, to save their jobs. However, you must know that this is not cause by the company, or the government (well hard to say really, but it's something that has been expected to come). This may be a little off topic but it explains what long term effects could come not just to this industry but after. I have been sitting on the view that the whole economy was always going to come down very soon... (this was a while ago before it actually did come down). Now yes some of the industries are recovering, and governments are pushing incentives to try and boost the economy. However, there are some people out there who only want to make sure they are secured, so we will continue to see in the future the big corporations paying these high commissions to their executives and this will make everyone mad again and the governments will probably try to get involved with this also. However, from the same source of information, this is not the end! We have been expecting the economy to recover, and it could completely recover to step into the biggest decline we have ever seen in our markets. I am not one giving any advise on here, however think about the follow topics and think if you agree with it: 1. Baby boomers - they are out to retire, they missed the buck (most of them) and never got to sell before the crash. When prices get back up there, than they will sell to ensure their retirement (unfortunately the percentage of the worlds assets that are owned by the baby boomers is so great that this will bring the markets down substantially - this is because the baby boomers are known as being the best investing generation). So once markets pick up this is an indication that it could come back down and very fast as the baby boomers once they notice it falling will sell very quickly. 2. The younger generations - now that things have come back and people have lost a lot of their jobs, you need to consider the price of anything now. A few years back people were living the high life at the age of 22 - 35, being paid great money, flying around the place and really living on the dream where their assets were making money and kept growing and growing. Assets were being geared against more than ever only because the markets were increasing more than ever! Now people who were looking at their balance sheets, or net assets and continual grow charts that showed them they were going to be millionaires are now in the positions that they can't afford to pay their own debts. This will cause a massive correction in the way assets are valued at. Because of what has happened and will happen in the near future, the younger generation will not be able to pay the current prices of assets. This may not make perfect sense to yo, however the price of any given thing is based on the supply and demand for that. The more demand the more expensive, but eventually when people are not willing to pay the prices and supply increases, suddenly the value will shift down to the level that people are willing to pay again. Because of decreased wages, decreased asset values and harder to get finance this will impact on a lot of asset categories. 3. Basic markets - Markets run in cycles. They go up and the go down. What has happened in history... normally repeats itself again. After every great boom, is a great decline (and can either become a recesssion, or worse a depression). We have experience some extra-ordinary times and we must understand what we will experience in the future could be of extra-ordinary characteristics. this meaning that people will not be able to predict it well, alot of people will say the complete opposite... and well things can be tough. If you look back to the 1930's (80 years ago) we had a great depression... it is said that there is an 80 year cycle which could push us back into one... personally i dunno... but are you prepared to risk it? When things like this are being said I am a firm believer of protecting yourself! Stay on the fence and not getting caught up with it all. waiting for the right opportunity to take advantage of what is going on. Start making money online the correct way, did you know that it is easy if you know the correct ways (Please add me as a friend and PM me if you are really interested in this! I know the best strategies to get moving on this!) I hope I haven't gone off too much from the original topic (which i don't think i did too much) but mainly relating to the whole things going bad anyways. Good luck!