Friday, July 31, 2009

Cash For Clunkers

Cash For Clunkers runs out of money in six days. Congress tops it up from $1 Billion to $3 Billion. Does that mean it will now last another twelve days? Ford (F) is up about 6% on the day. Many have criticised the program saying that it just accelerates the inevitable. Estimates of 12 million vehicles to be junked keep floating around the automotive world. That equates to just over $50 billion. We probably are not going there. But $3 billion is just a rounding error for the Obama administration. Then again think of all the pollution that will not happen. Is this an automotive story or a health care story? Methinks both.