Don't think I am liking this trend

Joined: 26 Aug 2008 Posts: 269

I don't have a problem with the administration defending themsleves or policies they enact, but I don't really care for stuff like this http://finance.yahoo.com/news/White-House-fights-back-on-cnnm-1013109965.html?x=0&.v=3 Getting into a pissing match with Edmonds.com seems like a complete waste of time and effort.

First off, the Edmonds.com report on Cash for Clunkers would have been published, recieved little fanfare, and been quickly forgotten. Instead now it's become a case of where the story got bigger than it originally was by directly adressing the report, and making some fairly snide comments about it.

I never was a fan of Cash For Clunkers. I thought it was a better step than TARP, but targeted too small a segment of society with too large a chunk of money, and all it really did was help push through some older inventory of autos. It didn't suddenly create a demand for new cars and didn't put auto workers or folks associated with the auto industry back to work.

On a side note, I hate the tax credit for home purchases and the fact they have now extended it. Again, it effects way too few people. The market is FLOODED with homes. It hasn't spurred new construction, there is too much existing inventory to get new home production going. New home building is what provides jobs. Jobs are what will really get home sales moving. Home sales are strictly a indicator of the economy's strength. It shouldn't be used as a tool to try and spur the economy on, because it can't and won't work.

Joined: 06 Jul 2003 Posts: 8212 Location: Central CA

I've also noticed that several of the things being done by this administration seem to involve spending a whole lot of money on a not very large group of people .

We have people out there wetting themselves over a 3.75% increase in the GDP this last quarter, claiming that the recession is over and we're about to get back on the right track. So far, not a one of them has listed any specifics on this "huge" increase or what sector(s) of our economy it mainly occurred in which, according to some sources, were the insurance and financial industries which means exactly squat to anyone not holding a bonus earning position in opne of those industries.

I can guarantee you there are no upward trends occurring at my level in the food chain. I personally have lost over $150 from a monthly income that had barely exceeded $1000 for the first this year.

We are being told now that there will be no cost of living raise this year because unlike the fat cats with their automatic increases based on increases in the actual costs of living, ours are based on the rate of inflation and because of all the financial turmoil inflation supposedly has been flat this year no matter how much prices have gone up for the basic necessities.

We are also being told that in spite of there being no COL increase, that a) there will most likely be an increase in our Medicare premiums and b) Medicare will be eliminating some services and reducing the payment levels for others.

Those people who keep screaming about the recession being over every time there.s a 100 point uptick in the Dow or a 2% reduction in new unemployment claims and such, listen up... the damned recession is NOT over until it's over for everybody. Just because the top five percent of the population continue to make money by exploiting the oher 95% does not signal a strong national economy. I is only another indicator that our country has been victimized by the biggest white collar crime syndicate in the history of the country.

For the rest of us, the recession continues to deepen.

Joined: 22 Dec 2007 Posts: 445

Is the recession over? According to the technical definition yes....BUT these definitions were created when unemployment levels were lower.

Check out state gdp's and you'll see some surprises. I'm in Mass and although the country as a whole went up 3.5% we went DOWN 1.1%.

It's naturally to have recessions but we tried to prevent one post 9/11 with 0% financing and really low interest rates. People became way too accustomed to them as did businesses. This addiction is hard to break.

The whole cash for clunkers didn't really make sense for a few major reasons

1) many of these cars were still in good condition and only valued at 4K? Come on now think about that for a moment. I can't even find a used car for even twice that price

2) it was NEVER even cash for clunkers...more like credit to buy another care..huge difference. It's not like they got the 4K and walked away

3) economically for the most part it doesn't make sense to buy a new car. Certainly a trade in makes it better but still why wasn't this a trade in for another used car? Cars for the most part nearly always go down in value (although luxury goes down on a lower rate...if someone actually thinks their car is a classic and thinks it will be in the dupont registry that's their own opinion. Cars are not a legit investment for the average citizen)

4) So now we have plenty of people that were bribed with this 4K in buying a new car they might not have really needed. Does anyone think that they'll spend more or less after this transaction?

It is not within the vested interests of the government to force people to shop. I worked at one place where the sales manager wanted us to sell like crazy saying he didn't care if it put them into bankruptcy (nice logic) the next week he said orders had to be cancelled due to not pre qualifying the customer...!

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