Jim Cramer throws his Mad Money behind Cash for Clunkers
Capitalist-on-steroids Jim Cramer of Mad Money fame (or, if you're a Daily Show fan, infamy) thinks Cash For Clunkers is a great idea. This might surprise some of you (and shock us), but here's his reasons why:
- If the total price tag of C4C is $4 to $5 billion dollars, big deal – we spent more than that on Corn Flakes in Iraq.
- General Motors and Chrysler are already welfare queens, at least C4C lets them move some metal.
- C4C gives Ford, which Cramer calls "the most important auto company with the best lineup of fuel-efficient cars" a chance to stop burning cash, offer refinancing and perhaps equity offers (i.e. offer some common stock).
- The environment will be cleaner – "We are doing something good against global warming."
[Source: Blogging Stocks | Image: Rusty Jarrett/Getty]
Reader Comments (Page 1 of 4)
Tony 3:35PM (8/04/2009)
This guy is a dope.
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Tool 4:35PM (8/04/2009)
Agreed. Strange show with all the antics.
For once, however, I agree. C4C has pumped up sales and got people thinking about buying again. It created a turn-around in the auto industry and some good news for a change.
C4C was incredibly under-funded. Congress should make it $4 billion, which would allow for 1 million new car sales and 1 million old, polluting crappy cars permanently off the road.
Polly Prissy Pants 8:29PM (8/04/2009)
I would agree. That fact that we're throwing money away at a horrific rate in Iraq does not make $5 billion in government spending trivial or OK. This thinking that wasting money here is OK because we're wasting way more somewhere else is what got us into the trouble we're in. Not that I think this is necessarily a bad plan, It's just that it's still money and it still has to come from somewhere.
SteveRB 11:59AM (8/05/2009)
recall that cramer deemed ex-ny met lenny dykstra( and now bankrupt) a financial genius.
Rob 11:47AM (8/08/2009)
Idiot. NEW CARS DO NOT HELP THE ENVIRONMENT. Just because it gets slightly better MPG, or has fewer emissions, does NOT negate the HUGE impact of actually refinning/shipping all the materials required, and hte manufacturing of a new vehicle!
http://www.youtube.com/watch?v=ooN9INJxxy4
Watch the video. NEW CARS ARE NOT GREEN.
Eidolways 3:39PM (8/04/2009)
"Mad" money, indeed. This is actually a good illustration of a miniature government-induced boom like the one we saw in the housing market. The government makes a deal sweet with easy cash, and of course people jump on it. When the C4C deal runs out, and the prices go back up, the sales will slow down and you'll be left with overcapacity. Heck, someone might even have the gall to call the return to normalcy a "sales slump".
Cramer's never impressed me with his economic "insight". He still doesn't.
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audi_arena 5:05PM (8/04/2009)
Considering the market contracted from 16 million units to just more than 10 last year practically overnight, I think it's safe to say that the current market conditions aren't "normal", and ANY boost in consumer confidence right now is a welcome one. ....Expecially one that has as many fringe benifits as this one.
Luis 3:41PM (8/04/2009)
This guy is a loon, but the program is doing exactly what it was intended to do. The problems that dealers have faced are just a result of its success. 'Oh no, too many people are trying to use a program!'
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Eidolon 3:42PM (8/04/2009)
"Mad" money, indeed. This is actually a good illustration of a miniature government-induced boom like the one we saw in the housing market. The government makes a deal sweet with easy cash, and of course people jump on it. When the C4C deal runs out, and the prices go back up, the sales will slow down and you'll be left with overcapacity. Heck, someone might even have the gall to call the return to normalcy a "sales slump".
Cramer's never impressed me with his economic "insight". He still doesn't.
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gerrrg 4:23PM (8/04/2009)
The housing boom wasn't government-induced; it was greed-induced by Wall Street firms and banks that sought to separate risk from price, while profiting greatly.
Tim 5:07PM (8/04/2009)
No. The real estate boom was caused by a dramatic increase in demand for homes due to population growth and easy money. The easy money was a result of mistakes by both banks and the government, but it wasn't forced on anyone; the consumers that took loans they weren't capable of being able to pay back have to be held culpable as well (it's called personal responsibility). Ultimately, everyone f'ed up. It happens, now let's get over it.
Moving on, $4-5 billion is a hell of a lot of money. It's even a lot for the government. Additionally, I suspect that this bill will actually harm the environment. We are using resources to build new cars that we don't need and to destroy old cars that still work perfectly well.
Alexander 3:43PM (8/04/2009)
wow this is like the first thing that cramer got right ever. good job jim!
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tankd0g 11:49PM (8/04/2009)
He's reading the situation after it happened like every other idiot on TV, if only you could do that with stocks...
Alex 3:43PM (8/04/2009)
I can't stand Jim Cramer. Way too over the top.
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Level 3:44PM (8/04/2009)
they should def keep the program running longer.....
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Wobbly_ears 3:45PM (8/04/2009)
Cramer is a Socialist!!! He makes Glen Beck cry!!!!
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Thunderbuck 4:30PM (8/04/2009)
Ooooo! Cage-match!
nrb 3:47PM (8/04/2009)
Autoblog needs more hits. Let's bring up C4C again.
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Luis 3:48PM (8/04/2009)
or the Volt. Or Camaro. Anyone of those three will do the trick.
Erik 3:53PM (8/04/2009)
What are you talking about? This blog is about the auto industry, and C4C is currently the biggest thing going on in the industry. Of course they are going to have a lot of posts about it.