Cash for Clunkers is ending on Monday. The plan was so popular that it is running out of money again and there seems to be no extension of the program.
In theory this sounded like a great plan and has definitely stimulated the car industry because people were interested in purchasing a new car that would be more fuel efficient. One problem I had with the program is that people were allowed to buy any car, instead of just offering the program for more fuel efficient American made cars. Another issue, is will the people who are buying the new cars really be able to afford the car?
When the program ends will people still be as eager to buy a new car?
“The effectivenessof the ‘cash-for-clunkers’ program will be judged in a number of ways, but a key measure will be how does the automotive market respond to the absence of the ‘clunkers’ incentive to buy now?” said Jack Nerad, editorial director at auto pricing trackers Kelley Blue Book, in a statement.
The Cash for Clunkers program is similar to loss leaders for general merchandise stores. When there are no sales or incentives for consumers to buy anything will they still want to buy items? Temporarily, car manufacturers needed to go ahead and make more cars but will this resurgence make a big difference in a few weeks or month when the incentive is not available?
Big banks are rejecting California’s IOUs.
Even in January, it was reported that California might have to issue IOUs. Last week the state started issuing IOUs and major banks have made a promise not to cash them after today. There is a $26 billion budget deficit. The only other alternative is to go to a credit union. There are about 60 in the state that will accept them for deposit.
Most major banks reiterated that customers could not deposit the IOUs after today. Others, such as City National Corp., said they would continue accepting the registered warrants but could stop taking them at any time.
The last time the state sent out IOUs, during a 1992 impasse between then-Gov. Pete Wilson and legislators, banks also eventually rejected the registered warrants.
The 3.75% interest isn’t enough of an incentive for the banks to accept the IOUs but the credit unions are hedging their bets to gain a greater foothold in the market since there are larger financial institutions that are not accepting the cash vouchers. Some people have tried to sell them on the internet at a discount because they have no other place to turn.
Additionally…
Another way California is looking to garner income is by taxing marijuana.
Like to read? Summer reading programs abound for children and school aged young people but once you leave the hallowed halls there are few incentives to read in the summer… or are there? Several cities are promoting adult summer reading programs.
The Brooklyn Public Library offers a prize to each person who enters and readers may also write book reviews. Those who do will be entered into a drawing for a prize.
The Chicago Public Library has Land of Lincoln Readers this summer with suggested titles. All you need to do is complete a form with your name, and the author and title of two books that you between June 15 and Aug 1and you can receive a tote bag.
The Seattle Public Library’s program allows readers to post reviews which will be shared with other readers.
The Manhattan (Kansas) Public Library offers a program where readers enter every book that they read in the summer for a chance at a weekly and grand prize.
Austin, Texas’ library system allows readers to complete an entry form for a prize for each every three books read.