Am I missing something here, or is the Cash For Clunkers program similar to the mortgage catastrophe that was responsible for igniting the current economic problems in the U.S.?
People were lured to the thrill of new homes, big homes, more home than they could afford when they were able to be approved for a larger mortgage than they could realistically handle. The thought was, well if I can get the money I must be able to afford it. Then the payment book arrived and soon after the bank knocked on the door and took their house away. We are all now paying the price.
I'm not saying that the Cash For Clunkers program is going to ignite a new recession. But on a smaller scale, it seems to be doing the same thing....maybe there is a reason a person is driving a clunker. Maybe this person can't really afford a bigger, better, newer car.
But along comes this temptation....the thought that they could actually get $4500 on a trade in for a brand new shiny auto! The clunker will never be worth that much again.
So off they go to the dealership, sign their name for a brand new.....6 year auto loan. Something they really probably can't afford, another bill to pay, another loan.
Wait! This is great for the economy! It's helping the car dealers, the automobile manufacturers! So, who cares if the little guy ends up losing his new car because he can't make the payments? And who cares if now he has lost his clunker, too?!
At least Cash For Clunkers will have its 15 minutes of fame.
If that's not enough, take a look at what happens to your computer if you log in and register at the official Cash For Clunkers website:
No thanks, Obama. I'll keep my clunker.
1 comment:
Big brother is watching! This is scarey! What is our government turning into? Not that I would go on that site on my own but thanx for the warning and also to be alert to any other sites that have this result. I'm moving to Canada! (Wait, how is the government there?)
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