Quote:
Originally Posted by aznpoopy
the program was very good in two major ways. first, it was basically a direct cash gift to anyone trading in a car worth less than $4500. second, and relatedly, it led to the creation of alot of new debt. debt is what stimulates an economy in fractional reserve banking system. debt = money creation = excess liquidity = cheaper borrowing = more business activity.
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That statement is asinine. Let me remind you how we got into this whole economic mess- the subprime lending debacle. Dems wanted every crackhead and high school dropout on the street to own their own home. The government pushed lenders to lend money to people who never could have hoped to repay the loan. Interest rates go up, houses get foreclosed upon, whole market comes down like a house of cards.
So what's our solution? SELL CARS TO PEOPLE WHO CAN'T AFFORD CARS, at any cost. This whole program is going to lead to repos and defaults up the ass, and we're going to have another mess on our hands.