Quote:
Originally Posted by RIJIMMY
Why would the amount of cars sold affect the "rate"???
The rate should remain flat regardless of the volume of cars sold. What this tells us is that more cars were sold to people that cant afford them. Which, if you remember, buying what you cannot afford is what caused the credit crisis.
so once again, help the failures, punish the successful
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You're injecting the market with a flood of new loans during a recession.
But the purpose of the plan was to create cashflow and demand for manufacturing as well as get older less efficient cars off of the road. Cars that have been repossessed will be sold off and continue to benefit the system.
It would be very difficult to measure the NPV of such an action, but it doesn't seem like a terrible waste of money and probably did some good.
-spence