Gambling

[msmichelle]

With the news of the big FAIL on the short-sighted "Cash for Clunkers" program (did I spell that right?), another post on a journal I read, and the late night Starz showing of Bubble Boy's Las Vegas excursion,the topic of gambling entered my mind

Comments

[smjayman]

If you were already planning on trading in an old car for a new one, this program made sense. In no other application did it even come close. An old paid-off car has intrinsic value, not in the least because it ***IS*** paid for. There is a reason I love my old Corolla much more than $900 worth. (What I paid for it.) People give me grief about it, but it costs me almost nothing to operate it. (30 mpg and occasional oil changes.)

Americans love cars, and they especially love NEW cars. I can see the incentive, no matter how short lived or ill-conceived.

[msmichelle]

I give the policy credit for its efforts to stimulate a bad economy, inherited by the last administration, but I don't think auto loans are the way to do it. It's basically an unsecure loan to most consumers who would participate.
Used cars are the way to go, I agree.
I would bet car dealers did some incentive financing for their own pockets on these deals too? If they did, I can see how it would help private industry, in addition to the sales they got. I don't see how it helps the end consumer given the depreciation rate, etc.