Quote:
Originally Posted by ryguy
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.
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the problem with subprime lending was super lax lending standards.
the whole reason you need new debt creation/direct stimulus to consumers (which btw, is the only way out of a keyenesian liquidity trap) is because the credit markets are frozen with high lending standards; banks are tight with their money.
in short, the people who actually have the ability to take advantage of the program are going to be people who can qualify for loans under these conditions, and actually need a loan to buy a car.
i.e. the first qualification basically eliminates the super poor; these are not mexican farmhands being sold $500,000 dollar homes here with inane lending. the stimulus is going straight to the middle class.