Topic: NY dealers pull out of clunkers program | |
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maybe it's going well in St. Louis rt now but what happens when the program ends in a couple of weeks and the dealers still have to try to move cars? The up tick in traffic is widely interpreted as speeding up pent up demand. What happens when the candle that's been burnt from both ends runs out? The light goes out.
Now all the dealers that have been running low on capital on account of the CARS program are going to feel the squeeze during what is typically a slow fall and winter season to begin with.. The law of unintended consequences is rearing it's ugly head again. |
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maybe it's going well in St. Louis rt now but what happens when the program ends in a couple of weeks and the dealers still have to try to move cars? The up tick in traffic is widely interpreted as speeding up pent up demand. What happens when the candle that's been burnt from both ends runs out? The light goes out. Now all the dealers that have been running low on capital on account of the CARS program are going to feel the squeeze during what is typically a slow fall and winter season to begin with.. The law of unintended consequences is rearing it's ugly head again. Why is it bad that the dealers are making money right now? It doesn't just help the dealers, it helps the community. Yes, the winter slow months are coming but isn't it better that they made some money now instead of not making any money? |
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because it's artificial. that's why.
And in case you haven't heard, as of now most dealers have been losing money on these deals.. The Gubment can say "the check's in the mail" but until it arrives and clears the bank, it's as well as not having it in the first place.. what happens if the government decides there are some mystery errors in the applications and they get denied? All those cars are already out on the roads with subsidized subprime loans backing them.. The dealers are left with their junk in their hands and on the hook for all that revenue that was supposed to come from the Fed. They won't be able to sue for it. In that eventuality, the whole thing will be a total loss.... that's what's wrong with it.. |
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