• Aug 4, 2009
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:
  1. 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.
  2. General Motors and Chrysler are already welfare queens, at least C4C lets them move some metal.
  3. 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).
  4. The environment will be cleaner – "We are doing something good against global warming."
Cramer does go on to say that certain parts of C4C smacks of The New Deal, but Clunkers' (relatively) small price tag is a cheap way to clean up the environment, fight unemployment and move inventory. Says Jim, "[i]t worked for the Chinese with their vouchers to spend, it's working here. What's the issue? Come on Senate, go make it bigger!"

[Source: Blogging Stocks | Image: Rusty Jarrett/Getty]


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    • 1 Second Ago
  • 52 Comments
      • 5 Years Ago
      Autoblog needs more hits. Let's bring up C4C again.
        • 5 Years Ago
        or the Volt. Or Camaro. Anyone of those three will do the trick.
        • 5 Years Ago
        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.
      • 5 Years Ago
      Just lower my taxes and Ill buy all kinds of crap to help the environment.
      • 5 Years Ago
      "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.
        • 5 Years Ago
        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.
      • 5 Years Ago
      Cramer's onboard because the last time he opposed Obama vocally, he started getting every market call he ever made scrutinized. Considering he made dozens of calls daily concerning the stockmarket, it doesn't take much to find bad calls and dwell on them.

      Not that I think he was ever great at it but to expect a talking head on a TV show to make you rich with their stock advice is an inherently flawed plan to put it mildly.
      • 5 Years Ago
      Cramer is a Socialist!!! He makes Glen Beck cry!!!!
        • 5 Years Ago
        Ooooo! Cage-match!
      • 5 Years Ago
      wow this is like the first thing that cramer got right ever. good job jim!
        • 5 Years Ago
        He's reading the situation after it happened like every other idiot on TV, if only you could do that with stocks...
      • 5 Years Ago
      As long those who believe that the C4C program is a joke are also the same ones who are bashing the ridiculous pay scales/bonuses of upper management, I'm ok with it.
      • 5 Years Ago
      I can't stand Jim Cramer. Way too over the top.
      • 5 Years Ago
      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!'

      • 5 Years Ago
      So many prospective future classics destroyed.
      • 5 Years Ago
      they should def keep the program running longer.....
      • 5 Years Ago
      "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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