Overhaulin'

Are the new car sales loans coming from Cash 4 Clunkers, going to be bad, for the same reasons the home loans?

went bad? Think about it, a person who trades in a car worth $4500 or less and then is forced to buy a new car. Now if they could only afford a car worth $4500 today, how are they going to afford the payments and insurance on a new car tomorrow? A few maybe, but how many people got into risky loans, loans they could not afford, just like the home mortgage mess, because it sounded like the government was almost giving you a car. Do you think a portion of these loans are risky and will go bad, just like the home mortgage loans?

Public Comments

1. No. "It appears the program shoe-horned months worth of car sales into a week or two, and may not have increased overall car sales much at all"
2. That depends.... will gas prices be jacked up again to $4 a gallon while Obama is in office with a Democrat majority? Will Obama call for credit card companies to increase minimum monthly payments and kill people already swamped in debt?
3. Nope.
4. Yes, Boss H, I believe he will.
5. 'forced to buy a new car'? If you remember at all the house loans were themselves very easy to get. The vast majority of local commercial banks do not practice the same kind of adjustable rate loans, balloon payment loans, and the like on car loans that got the house market into trouble.
6. No one is "forced" to buy anything. Some people need a new car because the older car that they have is costing them too much in repairs and gas. I think it is good that middle class Americans are getting a break.