One did not have to be an ecomomist to point out, last fall

[question everything]

that all the money that was going to GM and Chrysler was not going to help if no was was buying their products. Many of us said that instead, buyers should get some kind of a tax credit.

But... no... they got their billions.

And now, of course, the "Cash for Clunkers" had to have an emergency funding of... what, $2 billion?

Give them $10 billion! Yes, I know, the deficit, etc., but dealers are making a sale, generating taxable revenues! Sales people are making a sale, earning a taxable income. They will be able to keep their houses, maybe even visit the neighborhood bar or shop for the "back to school" sale!

These $10 billion will have an immediate impact that none of the bailouts have shown so far.

Meanwhile, from the WSJ:

Nine banks that received government aid money paid out bonuses of nearly $33 billion last year -- including more than $1 million apiece to nearly 5,000 employees -- despite huge losses that plunged the U.S. into economic turmoil.

[glowing]

1. 10 billion, Its only one month in Iraq. I think we can find some money for a program that works.

Got to love some Gov. socialist program.. Its actually working. Cleaning up environment, moving cars, putting dealers in the positive, and the automakers and parts people should be heading back to work. I think this is a grand Idea. I would actually say expand the program, encourage taxi companies to go hybrid... change out state/ local municipalities SUV's... Does the person doing restraunt/ foods inspection need to drive an SUV.. just because that used to be a great tax break on fleets?

[proud patriot]

2. My husband sells cars for a living

he says he's been taking old clunkers off the road and putting
people in fuel efficient cars ..

Yesterday it was an old chevy suburban prob got 7-10 MPG
off the road and a 4 cylinder now on the road ..


I sure hope this continues .

[KansDem]

3. And I wonder how many of those 5,000 employees promptly socked their swag away...

...in UBS Bank or some other off-shore tax haven designed to avoid paying US taxes.

Kind of ironic: US taxpayers' money going to private enterprise so they can pay exorbitant bonuses that go into secret, offshore tax havens to avoid paying US taxes.

Only in America...

[invictus]

4. Welcome to the Corporate States of America (CSA)! It's their country. You and I just live in it.

:sarcasm:

[Honeycombe8]

5. If they hadn't gotten that $, tho, they might not exist right now?

They were on the brink of BR at that time. I know GM ended up filing for BR, but they were able to use the govt funds to get rid of some debt, revise some plants, do some new innovative designs (or get that going), and position themselves for a type of BR that allows them to continue.

Chrysler, I think, should've been allowed to fail. Didn't someone buy Chrysler, in the end, anyway? Who buys Chryslers, anyway? And anytime there's a recession, that co. seems to be in trouble, as if it's not a healthy co. to begin with.

[question everything]

6. Perhaps pay down they debt

even cover payroll for six months and health benefits. I think that all of this would have still been less than what they received.

I think that the problem with all the bailouts: banks and cars, was that the money was just given, no specific actions that could show results.

This is the beauty of the cash for clunkers: it provides immediate results. This is why we should pump more money into it.