Tuesday, August 11, 2009

$2 Billion More for Clunkers...Auto Bailout #2

Just as quickly as the "Cash for Clunkers" program was nixed, it was put back in to action on August 7th with $2 Billion more in funding from the Federal Government. Apparently the 1st weeks running gave the auto industry that much needed shot in the arm that was required to resume business in a grand fashion and American consumers found the $3500 and $4500 rebates very appealing as well. There was mention that the car dealers over sold the limit in automobiles eligible for the program as well, so the timing was impeccable.

Now it seems that the interest in the program is waning back to pre-Cash for Clunker status and the "gold rush" may be over for the auto makers. Speculation seems to be that the rush to take advantage of the federal government money has become less pressing with the additional funding. I think it can easily be said that this program is saving the big American auto makers though. We probably would have seen more bankruptcies ensue had something not been done to spark interest in the auto market again.

My problem with this whole program still lies in the fact that our wonderfully resourceful government did not think to deal with the motors and transmissions of our "recycled" vehicles that will be deemed "Clunkers." This not so green "green" approach is quite a juxtaposition if you ask me. Oh how lovely are the contradictions in the political arena.

Speaking of financial thoughts in the midst of a recession, here's a fine article on how to continue to be thrifty and thrive post recession.

Good luck with all your recession proof goals and have a great mid-week!


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