Wednesday, August 19, 2009

Clunker Cars Cash Crash

The Obama administration has been unable to pay for the clunker cars that auto dealers have been buying for the government under a $3 billion "Cash for Clunkers" subsidy program.

Dealers say that the federal program has paid for only 2% of the cars they've purchased under the Obama program. Now, dealers are running out of money and withdrawing as participants.

According to Mark Schienberg, president of the New York Automobile Dealers Association, quoted here

"The program is a great program in the sense that it's creating a lot of floor traffic that a lot of dealers haven't seen in a long time," he said.

"But it's in the hands of this enormous bureaucracy and regulatory agency," he added. "If they don't get out of their own way, this program is going to be a huge failure."

Next up, the medical community.

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