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Obama To Suspend ‘Cash For Clunkers’

From an unfazed Associated Press:

AP sources: Govt to suspend ‘cash for clunkers’

By Ken Thomas, Associated Press Writer

WASHINGTON – The government plans to suspend its popular "cash for clunkers" program amid concerns it could quickly use up the $1 billion in rebates for new car purchases, congressional officials said Thursday.

The Transportation Department called lawmakers’ offices to alert them to the decision to suspend the program at midnight Thursday. The program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle…

Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns about large backlogs in the processing of the deals in the government system, prompting the suspension

Even before the suspension, some in Congress were seeking more money for the auto sales stimulus. Rep. Candice Miller, R-Mich., wrote in a letter to House leaders on Wednesday requesting additional funding for the program.

"This is simply the most stimulative $1 billion the federal government has spent during the entire economic downturn," Miller said Thursday. "The federal government must come up with more money, immediately, to keep this program going."

Brendan Daly, a spokesman for House Speaker Nancy Pelosi, D-Calif., said they would work with "the congressional sponsors and the administration to quickly review the results of the initiative."

General Motors Co. spokesman Greg Martin said Thursday the automaker hopes "there’s a will and way to keep the CARS program going a little bit longer."

Hilarious.

Yet another brilliant Democrat pipe-dream wrecked on the rocks of reality.

Just imagine how accurate their national healthcare estimates will turn out.

This article was posted by Steve on Thursday, July 30th, 2009. Comments are currently closed.

24 Responses to “Obama To Suspend ‘Cash For Clunkers’”

  1. U NO HOO says:

    If our family was on vacation and we ran out of money we would go home.

    We never ran out of money because we planned ahead and if we didn’t have enough money we didn’t go on vacation.

    And I don’t have an economics degree, just the equivalent.

    Can’t anyone in government estimate? I remember learning to estimate in high school, public school at that. Number of clunkers around, times $4,000, = the amount to budget.

    Cash for Clunkers, another unfair stupid idea like first time home buyers get $8,000…where was our $8,000 when we were buying our first house? Hmmmm….

    If they need $8,000 can they keep up the mortgae payments? Sounds sub-primey to me…here we go again in a year or two.

  2. U NO HOO says:

    $1,000,000,000/$4,000=250,000 cars

    Seems to me it would be marginally green or marginally stimulating.

  3. Colonel1961 says:

    I understand. But that was just cars. They’ll do much better with health insurance…

  4. Rusty Shackleford says:

    “This is simply the most stimulative $1 billion the federal government has spent during the entire economic downturn,” Miller said Thursday. “The federal government must come up with more money, immediately, to keep this program going.”

    Other examples of brilliant government logic:

    Yes, and if you paint faster when you get down to the bottom of the paint can, you won’t run out before you’re done painting. Or, “Ive cut this board three times and it’s still too short”. Or, “Drive faster, we’re almost out of gas and I don’t want to run out before we get there”.

    I think my brain just got a cramp.

    Honestly, Forrest Gump would be a better president.

  5. Surprise!!!!

    Now onto a Trillion dollar Health care plan… Cheap or “Free” just ain’t easy to guess now-a-days

  6. 1laidbackRN says:

    I guess it’s fair to say that our government has the exact opposite of the “Midas touch”. Everything they touch turns to crap….

  7. canary says:

    “Cash For Clunkers” Suspended
    Program ran out of funding after four days
    By Martin H. Bosworth ConsumerAffairs.com July 31, 2009

    The program certified 22,782 car trades since Monday, according to the National Highway Traffic Safety Administration (NHTSA), but a survey of automobile dealers found that there was a backlog of 25,000 trades still awaiting clearance. The agency also rejected many claims due to illegible or incomplete paperwork, according to the Detroit Free Press.

    … while others were claiming the procedure for approval was too difficult and was leaving them unable to make transactions.

    The program was criticized on a number of fronts, with Republicans and some Democrats claiming the cost would be too high and provide too little stimulation to the economy. Environmental activists claimed the program actually favored purchasing of SUVs and “crossover” vehicles, due to inconsistencies in the Environmental Protection Agency (EPA)’s mileage standards.

    And it wasn’t long before the program was announced that a proliferation of scam operations appeared, looking to take advantage of the expected flurry of business in the auto sales market.

    Read more: http://www.consumeraffairs.com/news04/2009/07/clunkers_cash10.html#ixzz0Mnqcbi9b

    http://www.consumeraffairs.com/news04/2009/07/clunkers_cash10.html

    • Rusty Shackleford says:

      [snip]

      “…rejected many claims due to illegible or incomplete paperwork”

      [snip]

      “…actually favored purchasing of SUVs and “crossover” vehicles,”

      ————————–And my own take:
      …vehicles being bought by dead people and the family pet. ACORN members buying multiple, large SUV’s, etc.

      I swear, I saw this coming with bright, flashing lights and bells on it. And, please note….the same salesman who kept selling this basket of dead fish, who said it was “absolutely necessary” to stimulate the economy is now shutting it down.

      Actually, I still have my 1994 Ford Pickup that gets 13 mpg (actually closer to 11 with the government mandated ethanol infused gasoline). I can’t get financing for a newer vehicle and can’t really afford it if I could. So…this helps me how?

      However, the GOOD thing to come of this is that they (so far) haven’t authorized wasting another billion dollars on it.

  8. Niko says:

    The program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle…
    …..Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent.
    “This is simply the most stimulative $1 billion the federal government has spent during the entire economic downturn,” Miller said Thursday. “The federal government must come up with more money, immediately, to keep this program going.”

    So they spent $96 million for 22,782 vehicles….Let’s square that to $100 million…..Where the other $900 million go?

    • Colonel1961 says:

      I think they were predicting – based on backlog (demand) – that the remaining $900M would not be enough…

    • Liberals Demise says:

      Gubbamint math is soooooo ‘fuzzy’. Stevie Wonder could spot this rip off!

  9. caligirl9 says:

    I wonder how many of those cars sold were financed, what those financing programs are/were, and how long is it going to take people to start defaulting on their car loans? Unless of course they bought into the “we’ll make your payments” programs. No way those are “free” to consumers/car buyers.

    My 11-year old Mustang didn’t qualify as a “clunker” (according to its info sheet, it gets 19 combined MPG, though really, it does worse on streets and far better on highways, close to 25 on highway, and that’s an 8-cylinder car!) and even if it had, it’s paid for, it runs, and I just don’t trust this shaky economy. For me, work is feast (this week and next) or famine (the previous three).

    I don’t know anyone who took advantage of this program.

    “Free” health care will go just as well. Everyone will be making appointments to have moles removed or have little nagging things all looked at and over-tested “because it’s free.” By mid-week of “free” health care you won’t be able to get into a doctor, people will be flooding doctor’s offices for minor things that could have been handled by over-the-counter drug treatment (allergies, stomach acid, constipation lol).

  10. Kytross says:

    I was going to take advantage of this program. I figured it was time for the democrats socialistic stupidity to work for me.

    I’m in the market for a Dodge Charger. I was planning on buying used, but as I read more and more about this program and did the math I realized this was an extra 3.5-4.5 thousand off the vehicle, and my truck is blue booked at just under three. Add in the other deals the local dealership is running and I’d be getting 8-10 grand off the face value of a new Charger.

    I figured I’d swing by the dealership Friday afternoon and see what they could offer me.

    Alas!

  11. Maybe the better way to have done this was for the government to simply BUY the smallest Chrysler available; The Calibur Compact. And make every one of those SOBs in Washington DC drive one.

  12. wardmama4 says:

    I believe there is a God – and he has a great sense of irony

    Here Obamacare is going down in flames – and just as they are about to ice that – a simple (and don’t forget important to the greening of America) program doesn’t even last a month (or really a whole 6 days)!

    I would hope that the majority (Liberals fav political word) of Americans wake up that this is a prime example of all the failures since January 20, 2009 and put stop to Obamacare.

    And Jason – I sort of agree – but I think that they should just use the taxpayers $$$$ and get Metro tickets – talk about saving the environment and of course the added benefit of actually doing what they insist we must do.

  13. Yarddog1 says:

    I would like to know the number of defaults on the loans for these new car sales. I’ll bet we’ll need another bailout to save the lenders. Why am I not surpised?

  14. BigOil says:

    Our Democrat rulers have deemed the program wildly successful and have commenced tossing billions more of our tax dollars down this rat hole.

    Just think – if $4500 is wildly successful – imagine how successful doubling the incentive to $9000 would be. If they triple it, I bet car makers couldn’t even keep up with the demand. Our economy would begin growing by leaps and bounds.

    The gasoline we could save driving back and forth to the unemployment office would be immeasurable.

  15. Liberals Demise says:

    Didn’t dinglebarry say he didn’t want to be in the car business?
    I know he said that!!

  16. chief14 says:

    I hear a lot of crying out there. Just to let you know the program is working fine, I took delivery of a brand new Honda on 7/30. I received a $4500.00 credit for my 1988 Lincoln that was a total piece of crap. I love my new car, thank you President Obama, you are truly a visionary.

    • JohnMG says:

      Hey Chief. What part of that new Honda do I own?

    • Liberals Demise says:

      Yeah!!
      Where you going with my rims and tires?

    • proreason says:

      “I hear a lot of crying ….I took delivery…I received a $4500.00 credit …I love my new car”

      Who’s it all about chief?

      In the future, just to speed up your postings, omit the pronouns. We know who you will be talking about.

  17. VMAN says:

    I just saw a Tampa car dealer on TV and he was saying that if the program falls apart he’s on the hook for $45,000.00. He also said that if a dealer makes an error in the program they could be fined $15,000.00. Just another load of government crap.


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