‘Clunkers’ program a flimsy house of cars

J.J. Schrader, Henderson

Tuesday, Aug. 18, 2009 | 2:03 a.m.

I have been following the recent letters to the editor in the Las Vegas Sun concerning the pros and cons of the “Cash for Clunkers” program, and I would like to add a few observations.

So, the government is providing “free” money to entice buyers into purchasing automobiles they would normally not purchase. I would like the Sun’s readers to watch the news over the next four to six months.

Watch the next “crisis” erupt when tens of thousands of these automobiles get repossessed because the buyer cannot and could not afford to make the higher payments, increased insurance, licensing, etc. (Remember the government’s encouragement of home ownership, even though many could not afford it? That worked well.)

Adding insult to injury, the clunkers traded in (most likely paid for) are no longer available as replacements and those that do remain are now selling at a premium. So, thanks to another great government plan, many on-the-edge car buyers will ultimately lose their new vehicle, be unable to purchase a suitable replacement, and have their credit ratings further damaged thanks to this sham of a government “incentive.”

Oh, and don’t forget that the banks that financed these vehicles are now holding the bag. But then, that’s not really a problem. We all know what this administration will do with more of your taxpayer money to help out banks in trouble.

I’m not sure how the butcher, baker and candlestick maker will appreciate the “multiplier” effect of this program, but the shoe repair guy will love it when everyone has to walk to get around.