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'Cash for Clunkers' Going Broke (shutting down Thursday night)
Politico ^ | July 30, 2009 8:44 PM | Staff

Posted on 07/30/2009 6:09:39 PM PDT by fight_truth_decay

The Obama administration is telling lawmakers that its much-touted "cash-for-clunkers" program is already running out of money and will be suspended Thursday night, according to three Senate aides familiar with the discussions.

The program — aimed at giving at boost to the U.S. auto industry — was supposed to expire at the end of October. But in the one week since it took effect, it appears to have run dry of the $1 billion allocated to it, aides said Thursday.

The White House will need to decide whether to push for more money at a time when it's also pushing an ambitious and expensive domestic agenda — or let the program fade after it was touted as a way to help Detroit while improving the environment.

One Michigan Republican, Congresswoman Candice Miller, has already come out in favor of extending the program, saying in a statement that “There can be no doubt that the Cash for Clunkers program is a complete success given the fact that the entire $1 billion allocated to the program was expended in less than a week."

She called the program "simply the most stimulative $1 billion the federal government has spent during the entire economic downturn."

Sen. Chuck Schumer (D-NY) also called the program a victim of its own success in a statement issued Thursday night: "This was a very successful program, maybe even too successful. The program should continue, but perhaps with a tune-up so that we get the most stimulus, conservation and efficiency for the buck."

White House aides were not immediately available for comment. The National Highway Traffic Safety Administration administers the program, but no one was available for comment Thursday evening.

Last Friday, registration began for dealers who wanted to participate in the program, which is intended to encourage consumers to trade in their old cars for a credit program to purchase new fuel efficient cars. Under the rules that went into effect last week, the purchased vehicles must be 2008, 2009 or 2010 models, and the vehicles must be purchased between July and November to qualify. And consumers would be able to receive a $3,500-$4,500 discount from car dealerships when they trade in their old vehicles and purchase a new one.


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: bhodot; cashforclunkers; clunkers; commiesareclunkers; congress; vehicularhomicide
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To: libbylu
Unbelievable. Found an article on it this morning.

http://mises.org/story/3568

101 posted on 07/31/2009 3:43:35 AM PDT by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
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To: fight_truth_decay

Is this a nexample of how Obamacare will be run also?


102 posted on 07/31/2009 4:27:44 AM PDT by BuffaloJack (thirst for absolute power is the natural disease of monarchy - Thomas Paine)
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To: steve86

I might need counseling. As that part of the Cash for Clunkers program?


103 posted on 07/31/2009 4:54:46 AM PDT by Loyal Buckeye
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To: Mercat

Ditto. My 95 Suburban gave up the ghost last week. So we got a GREAT deal on a brand new VW. The dealer laughed, because I, just like everyone else who used the cash for clunker deal could afford a new car, and were going to buy one anyway.


104 posted on 07/31/2009 5:00:44 AM PDT by Kozak (USA 7/4/1776 to 1/20/2009 Reqiescat in Pace)
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To: palmer

Our dealer told us they have to put salt water in the engine to “seize” it, and TOW it to a certified “green” recycling center where they will crush it.


105 posted on 07/31/2009 5:04:20 AM PDT by Kozak (USA 7/4/1776 to 1/20/2009 Reqiescat in Pace)
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To: All

Were the cars being purchased at big three dealers or foreign car dealers?
It was designed to subsidize the big three but if people were buying Hyundais, Hondas and Toyotas, it would not have the desired effect.


106 posted on 07/31/2009 5:25:30 AM PDT by newnhdad (The longest of journeys begins with one step.)
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To: fight_truth_decay

Anyone who didn’t see this coming is an idiot.

My husband looked into this just out of curiosity (we’re not in the market for a car just yet—we have no desire to take on a car payment since we’re on the Dave Ramsey program). His car is a 1988 Honda CRX—not eligible since it’s over 20 years old (he gets anywhere from 40-50 mpg). Our 2000 Windstar—what we could get as a trade-in would not fit our family of six (including a toddler car seat and two booster seats).

Gee, thanks, Obama! Way to look out for the hard-working families of this country </s>


107 posted on 07/31/2009 5:31:40 AM PDT by Hoosier Catholic Momma (Arkansas resident of Hoosier upbringing--Yankee with a southern twang)
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To: fight_truth_decay

“There can be no doubt that the Cash for Clunkers program is a complete success given the fact that the entire $1 billion allocated to the program was expended in less than a week.”


The goal of this program was to spend money and the evaluation method is to see if the money was spent.

When this was done in Europe, it was found that 80% of the people would have bought a new car anyway...............


108 posted on 07/31/2009 5:42:04 AM PDT by PeterPrinciple ( Seeking the truth here folks.)
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To: Rome2000

I’d like to see the zip codes where the “clunker” money actually goes to...


109 posted on 07/31/2009 7:34:29 AM PDT by GOPJ (Maldives sea levels have NOT risen in 1250 years -Professor Nils-Axel Moerner)
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To: VeniVidiVici
UPDATE:

House Majority Leader Steny Hoyer (D-Md.) told colleagues Friday morning that the House will vote today on a measure to transfer $2 billion from the stimulus to replenish the depleted cash-for-clunkers program, which has run out of money in its first week.

Read More

Of course dealers are not sure whether to "kill the clunkers" ..just in case the Govt doesn't come through with the cash!! The majority of the one billion already back logged in miles of paperwork and typical red tape will make forms (finalized on just a week ago) even more back logged.

But hey, it might mean more government shovel ready jobs to get through this mess.

We know the government is not in the business of making money,(Mrs. Clinton told us that as did others) so whether they hire the right expert to be in charge of this "cash for clunker" trial program was never the issue. So what if we lose the money...attitude...just put someone in there we can "control" should we need spin.

Wait til our elected officials come home for their summer holiday break. Which by the way, they will be not necessarily be "spending" ($$$) in their own states. So don't think you will get to visit with your "leader" at some towne meeting to be scheduled!

Note: Maine is a popular hideaway for many...especially from the West Coast along with the upper echelon of the media. It was reported on Boston talk show-caller to Carr, Geraldo is sporting around on the Cape in his new black Bentley convertible with press pass visible.

110 posted on 07/31/2009 9:13:50 AM PDT by fight_truth_decay
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To: Hoosier Catholic Momma
I hear you. I follow the same principles as you.

went into a 2008 with 12k miles from my dealer early on this year and the deal was great to start with. But the company I bought from (3 vehicles repeat) did not receive a govt bailout; nor will I ever buy from those recipients. In fact, my dealer had trade ins from new customers who traded sideways to get out of a upscale GM product because of that reason. They have been surprisedly busy, I was told.

It just makes you mad that you work hard to stay out of debt and then need to bail out those that do not!

111 posted on 07/31/2009 9:24:37 AM PDT by fight_truth_decay
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To: Hoosier Catholic Momma
Just KNOW you are better off!!!!
112 posted on 07/31/2009 9:26:02 AM PDT by fight_truth_decay
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To: buridan

I erroneously posted earlier that someone trading an 18mpg car for a 25mpg car would get a $4500 subsidy, while someone trading a 20mpg car for a 30mpg car would get nothing. Actually, you have to go up 10mpg to get the full $4500. If you go up by 4 to 9mpg, you get $3500. In any case, Clunkers is a subsidy that distorts the market. It raises prices for those that can now be outbid by those they are subsidizing.


113 posted on 07/31/2009 5:11:41 PM PDT by buridan
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