I wrote two posts on the topic “cash for clunker” before, expatiated how I thought about it. In both of them I generally agree with the move, as a solution to the gloom-and-doom car industry and the economic.
While lately, it seems that something happened, not rather unexpected, and it makes me reconsider the project. The Heritage Foundation had hardly announced their prediction that the project, it would be hard for us to afford, and the process of the payment would somehow be out of control. And now it seems that they got it. According to the AP, the “Cash for Clunkers” program is being forced to mark time because of a lack of funds.
It is reported that the Gov would set aside $4Billion to support the program while actually, only $1billion are done.
On my last post (about the topic), I told that about 16 thousand dealers signed to be parts of the plan, and now all this dealers are receiving clunkers only to find themselves get stuck in the cash flow, the refunding is quiet slow-motion and demands much and complicated work, and even, sometimes they are refused to refund because of some rather detail problem, which may be the cause of the slow down of the program. And al this, as I just said, are caused by the insufficient of fund and the sophisticated processes of refunding.
Thursday, August 6, 2009
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