Posts Tagged ‘cash for clunkers program’

The Lunacy Of C4C

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Seems perfectly good cars are being destroyed, ?!?

The Lunacy Of C4C

Courtesy of Tom Lindmark at But Then What

cash for clunkers destruction program

This is insanity.

Here’s an excerpt from an article in the WSJ concerning the C4C destruction program:

What Mr. Mueller discovered is that sodium silicate is the designated agent of death for cars surrendered under the federal cash-for-clunkers program. To receive government reimbursement, auto dealers who offer rebates on new cars in exchange for so-called clunkers must agree to “kill” the old models, using a method the government outlines in great detail in its 136-page manual for dealers: Drain the engine of oil and replace it with two quarts of a sodium-silicate solution.

“The heat of the operating engine then dehydrates the solution leaving solid sodium silicate distributed throughout the engine’s oiled surfaces and moving parts,” says the National Highway Traffic Safety Administration publication. “These solids quickly abrade the bearings causing the engine to seize while damaging the moving parts of the engine and coating all of the oil passages.”

The article notes that at one dealership the cars that were rendered forever inoperable included a 2002 Ford Windstar, a 1999 Jeep and a 1988 Dodge van. The van’s engine took the longest of all to seize.

Dispel yourself of any notion that this has a thing to do with the environment. This is a give-away to the auto industry and a lucky few car owners that happened to be ready to buy a car anyway. In the process, perfectly good cars are being destroyed in order to perpetuate a “green” myth.

If anything, this program represents in spades the American propensity to over consume at the expense of considered conservation. The political class is simply demonstrating that they have no clue as to what the road forward should be and in lieu of a plan they choose to fall back on a strategy that encourages the acquisiton of new goods when the existing model is perfectly serviceable.

The real tradegy may be the success that the program is experiencing. One would have hoped that we would have learned a lesson from the past year. Apparently not.

 


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Free Money Runs Out, Congress Authorizes More

Free Money Runs Out, Congress Authorizes More

cash for clunkersCourtesy of Mish

With $1 billion already wasted Lawmakers Vote on $2 Billion More to Replenish ‘Clunkers’ Program.

The U.S. House opened debate on an emergency measure to add as much as $2 billion to the “cash for clunkers” program after a burst of demand exhausted most of the initial $1 billion.

The initiative to encourage new-car sales is still in operation, White House press secretary Robert Gibbs told reporters today. Members of Congress had said late yesterday that the clunkers offer was being suspended.

“If you were planning on going to buy a car this weekend, using this program, this program continues to run,” Gibbs said. “If you meet the requirements of the program, the certificates will be honored.”

Named the Car Allowance Rebate System, the program provides credits of as much as $4,500 for the purchase of a new car when turning in an older vehicle to be scrapped. Lawmakers had expected the program to generate about 250,000 vehicle sales and to have enough money to last until about Nov. 1.

The funding was offered as an amendment to legislation by Representative Barney Frank, the Massachusetts Democrat who heads the House Financial Services Committee, which would ban incentive pay for Wall Street executives.

‘Cash for Clunkers’ Runs Out of Gas

Inquiring minds have found some interesting quotes in the Wall Street Journal article ‘Cash for Clunkers’ Runs Out of Gas.

Michael J. Jackson, chief executive of AutoNation Inc. said "It was an absolute success. There’s a very compelling case the government should put more money into it. It’s a great stimulus to the economy."

Actually a very compelling case can be made that the CEO of AutoNation is an economic illiterate. All the program does is shift demand forward. Those clunkers were going to die at some point. Now sales are up this year which will cut into next year’s demand, at the expense of everyone not getting free money.

Why anyone should be surprised at the "success" in generating demand for free money is beyond me. There is always demand for free money. Yet, interestingly, everyone seems surprised by the "unexpected success".

If the government wants more "success", it can give everyone $4,500 for a car. Short-term demand will soar. But long-term demand for cars would crash for the


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Phil's Favorites

Fighting historic wildfires amid bad ideas and no funding

 

Fighting historic wildfires amid bad ideas and no funding

A firefighter runs while trying to save a home near Lakeport, Calif. on July 31, 2018. AP Photo/Noah Berger, File

Courtesy of Edward Struzik, Queen's University, Ontario

Shortly after my book “Firestorm, How Wildfire Will Shape Our Future” was published in late 2017, I received a flurry of invitations to speak about the challenges of dealing with fires that are burning bigger, hotter, more often — and in increasingly unpredictable ways.

The invitations came from all over, from Los Angeles to Whiteh...



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Zero Hedge

Cooperate Or Die: In Private Meeting, Top Facebook Exec Threatened News Outlets

Courtesy of ZeroHedge. View original post here.

Authored by Jake Johnson via Common Dreams,

During a closed-door and off-the-record meeting last week, top Facebook executive Campbell Brown reportedly warned news publishers that refusal to cooperate with the tech behemoth's efforts...



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Kimble Charting Solutions

Junk Bond 12-month divergence matter this time?

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

Above compares the Pimco High Yield Fund (PHDAX) to the S&P 500 over the past 20-years.

Junk bonds diverged from the S&P 500 for nearly 24-months, prior to stocks peaking in 2000.

Junk bonds diverged from the S&P 500 for nearly 7-months, prior to stocks peaking in 2007.

Junk bonds have been diverging from the S&P 500 for the past 12-months. Will it be different this time?

At this time “It Doesn’t Matter Until It M...



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Insider Scoop

Morgan Stanley Incrementally Bullish On Salesforce, Says MuleSoft Deal Underappreciated

Courtesy of Benzinga.

Related CRM 10 Biggest Price Target Changes For Tuesday Insider Buys Of The Week: AT&T, GE, Salesforce ...

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Chart School

Bitcoin Update - 6000 is support

Courtesy of Read the Ticker.

Demand shows it hand at support levels, well it obvious that $6000 BTCUSD is support so far.

More from RTT Tv , Ref: Brazil bitcoin currency , Brazil New Accounts
 


 

Main Chart in video



 

Sure fundamentals...



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ValueWalk

Hedge Funds Spending Close To $1M A Year On Alternative Data, But Show Me The Alpha

By Mark Melin. Originally published at ValueWalk.

It should come as no surprise to ValueWalk readers that alternative data has an obsolescence value that is negatively correlated to adoption rates. While we have noted data value dropping as usage and knowledge rise, a known concept in the hedge fund industry. What has been unknown until now is the levels to which fund managers must go to ensure the value of their alternative data does not get lost to the dulling mainstream consensus.

...

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Biotech

Here's what we know about CRISPR safety - and reports of 'genome vandalism'

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

 

Here's what we know about CRISPR safety – and reports of 'genome vandalism'

A standee of the movie ‘Rampage’ at a theater in Bangkok, Thailand. Scientists in the film used CRISPR to create a monster. By Sarunyu L/shutterstock.com

Courtesy of Jianhua Luo, University of Pittsburgh

A movie just recently released called “Rampage” features Dwayne “The Rock” Jo...



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Digital Currencies

What is a blockchain token?

 

What is a blockchain token?

What’s this digital token good for, anyway? knipsdesign/Shutterstock.com

Courtesy of Stephen McKeon, University of Oregon

People are just becoming acquainted with the idea of digital money in the form of cryptocurrencies like bitcoin, where transactions are recorded on a secure distributed database called a blockchain. And now along comes a new concept: the blockchain-based token, which I’ve been following as a blockchain researcher a...



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Members' Corner

There Are 3 Main Theories That Explain Trump's Approach to Putin and Russia-Which One Makes the Most Sense?

What do you think?

Thom Hartmann suggests that the "Manchurian Candidate theory" is the least likely explanation for Trump's pro-Russia behavior in "There Are 3 Main Theories That Explain Trump’s Approach to Putin and Russia—Which One Makes the Most Sense?" (below).  disagrees and suggests that Putin probably has "the goods" on Trump in "Trump’s Plot Against America". (To be fair, Hartmann acknowledges that his three theories are not mutually exclusive.) Jonathan Chait argues ...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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