I could not agree more about putting people further into debt than they
already are...
Article from Dave Ramsey:
With all the buzz about Cash for
Clunkers, itbs easy to think that it was a great way for people to get a
better set of wheels. But was it really? No way! Cash for Clunkers was simply
a way for broke people to buy cars that they really couldn't afford. It was a
bad idea on multiple levels. But before digging into that, letbs take a
little history lesson.
About a decade ago, a fair housing program was
started, called a sub-prime lending market. The idea behind it was that
everyone b neededb to own a homebincluding broke people. The government
decided to start a program to reinvest in communities, which allowed pretty
much anyone to borrow money to buy a house. Lending companies charged high
interest rates, causing already struggling families to go even further into
debt.
Basically, this was a program designed to encourage broke people to
buy houses. Most people didnbt even know it existed until it unraveled and
became the number-one cause of our recent recession. The government took those
stupid loans back and securitized them, which created the financial mess last
fall. Helping broke people buy houses didnbt turn out to be a great
government program. Guess what? Helping broke people buy brand-new carsband
now home appliancesbwill turn out just as bad.
The Cash for Clunkers
program was designed exactly for people who should not take advantage of the
program. You trade your $2,000 clunker in for a brand-new, shiny $20,000 car,
and the only way you can afford it is with a high-interest payment. That just
means you really couldnbt afford it to begin with. Doesnbt this sound like
the sub-prime mortgage problem all over again?
________________________________
From: Robert Evans <b-evans@earthlink.net>
To: Spridgets <spridgets@autox.team.net>
Sent: Tuesday, September 22, 2009
3:37:00 PM
Subject: Re: [Spridgets] Sad
David Lieb wrote: " People condemned
to death a...."
Uh, ya, sure, OK, well.... AND I suppose the pair of Town
and Countrys by
Maserati and all of the limos? Believe all that and you
will.... Oh,
well, you get the picture.
It was back in July that even the
National Highway Traffic Safety
Administration admitted that there was
widespread fraud going on, with some
of the "clunkers" just making a U-turn
right back onto the roads again. And
just today an interesting story on the
failure of the giveaway program that
will actually end up consuming more
gasoline and putting individual
Americans further into debt: a debt that they
cannot afford.
_______________________________________________
Support
Team.Net http://www.team.net/donate.html
You are subscribed as
eap2140@yahoo.com
http://www.team.net/archive
http://autox.team.net/mailman/listinfo/spridgets
_______________________________________________
Support Team.Net http://www.team.net/donate.html
http://www.team.net/archive
http://autox.team.net/mailman/listinfo/spridgets
|