Quote:
Originally Posted by ensteele
I don't care how much oil this will save, you still can't spend your way out of debt!  |
This is true; I remind my daughter all the time when the subject turns to finances. (Think she finally gets it.)
The thing is, the point of the "cash for clunkers" program (which I believe was badly structured and probably did very little good for the long haul) was economic stimulus, not debt reduction. GM maintains their uptick in sales has enabled them to keep a production line or two rolling. Ask the folks cashing those paychecks (and spending money, and paying taxes) if the program was worthwhile. And all the detractors predicting a windfall of repos because people were induced into buying cars they can't afford are conveniently overlooking the fact that those buyers still had to
qualify for their loans in a tight credit market. Will some default? Sure. some always do.
And we've been brazenly, collectively asserting "I don't care how much oil this will save..." for 30+ years now. That attitude costs us dearly. We really need to consider another angle.
dcb