This is just stunning! The United States House of Representatives has upped the "Cash for Clunkers" appropriation by another $2 billion! This is after the original $1 billion ran out after six days!! From Bloomberg News,
Named the Car Allowance Rebate System, the program provides credits of as much as $4,500 for the purchase of a new car when turning in an older vehicle to be scrapped. Lawmakers had expected the program to generate about 250,000 vehicle sales and to have enough money to last until about Nov. 1.
The Michigan delegation led efforts for congressional approval to transfer economic stimulus funds for the Energy Department to the clunkers program, Senator Debbie Stabenow, a Democrat from the state, said today in an interview. Members said the effort has the Obama administration’s support.
“The administration worked overnight literally to identify a source for these funds,” Senator Carl Levin, also a Michigan Democrat, said in an interview. “They are not only on board, they are enthusiastically leading this effort.”
‘Working That Through’
They're looking to find a spare $2 billion! They worked to identify a source for the funds!! This is just astounding! Please see our earlier post on our opinion of the fantastic program Cash For Clunkers Will Provide a Billion Laughs!
I know that most folks don't want to hear from us Wall Street guys these days when it comes to fiscal responsibility but here is a little tip that we all learned on the trading floor. If you are bidding or offering some sort of transaction that isn't incredibly liquid or transparent, in competition with 5 or 6 other guys....if you keep winning over and over again....something is wrong. Something is very wrong!
Now think about this CARS Bill (Car Allowance Rebate System....CARS..get it?). They started this thing with $1 billion just 6 days ago. The funds were supposed to last until November. The original funds didn't even make it to August!! Now the market wants double the original program...TODAY?
Here is what is really twisted. Again from Bloomberg News;
The funding was offered as an amendment to legislation by Representative Barney Frank, the Massachusetts Democrat who heads the House Financial Services Committee, which would ban incentive pay for Wall Street executives.
Remember Mom always told you that two wrongs don't make a right? That's what these chuckle-f**ks are doing! On the same day that Andrew Cuomo came out with his study showing how Wall Street paid boffo bonuses in 2008 while taking taxpayer bailout money, Congress and the White House ram this giveaway through. This is their way of saying, "Screw you Wall Street. It's time for a bonus for Main Street." The economy is going further into toilet, the "Chosen One's" approval ratings are dropping like a stone, especially in Michigan, and the answer is to give away $3 billion to get people to buy cars. And I do mean "giveaway" because there is no way in hell anybody is going to properly track and document approximately 666,000 transactions. Not a chance.
How about a Fresca??