News Article: Cash for Clunker: White House vs. Edmunds.com

markenk · October 31st, 2009, 07:06 PM

On Wednesday, Edmunds.com put out a report that says the overall effect of Cash for Clunker program on the auto sales has been minimal.

	Quote:
	The Cash for Clunkers program gave car buyers rebates of up to $4,500 if they traded in less fuel-efficient vehicles for new vehicles that met certain fuel economy requirements. A total of $3 billion was allotted for those rebates. The average rebate was $4,000. But the overwhelming majority of sales would have taken place anyway at some time in the last half of 2009, according to Edmunds.com. That means the government ended up spending about $24,000 each for those 125,000 additional vehicle sales.

Click Here

On Thursday, the WH fired back.

	Quote:
	In a blog post on whitehouse.gov, the administration argued that a report on Clunkers by automotive Web site Edmunds.com "doesn't withstand even basic scrutiny" and is based on "implausible assumptions."

Click Here

This is almost like watching a comedy. Does anyone actually believe what the WH is saying?

NYBamaFan · October 31st, 2009, 07:28 PM

Yeah, I have been watching this develop. The Obama administration has treated Edmonds.com like an extension of the GOP. They were trying to show that the car industry is bouncing back, and that it is not all because of the cash for clunkers program. They proved their case, IMO.

The response by the administration is way over the top. They need to have thicker skin. Not everyone is going to appreciate their efforts, and they are going to make mistakes along the way. IMO, with this response, they come off sounding like GWB when he refused to admit clear mistakes...

ValuJet · October 31st, 2009, 08:51 PM

	Quote:	NYBamaFan
	IMO, with this response, they come off sounding like GWB when he refused to admit clear mistakes...

Much worse. They spend way too much time obsessing over Fox News. Then there's Rush Limbaugh and Sean Hannity.

Edmunds.com...The US Chamber of Commerce

The list continues to grow..

Queasy1 · October 31st, 2009, 08:53 PM

	Quote:	NYBamaFan
	The response by the administration is way over the top. They need to have thicker skin. Not everyone is going to appreciate their efforts, and they are going to make mistakes along the way. IMO, with this response, they come off sounding like GWB when he refused to admit clear mistakes...

Obama and his crew have continually shown thin skin since the campaign and their response to everything is to attack and denigrate. And they haven't even been in office a year yet. They have an ever growing enemies list full of people who disagree with them.

Here is a press release with Edmunds.com's respone to the WH response.

	Quote:
	The White House claims that our analysis was based on car sales on Mars and that on Earth, the marketplace is connected. We agree the marketplace is connected. In fact, that is exactly the basis of our analysis. It is also claimed we missed the possibility that Cash for Clunkers generated excitement and consumers bought vehicles even if they didn't qualify for the program — a claim that has been widely supported by anecdote but by little analysis. It does, after all, seem a bit odd that masses of consumers would elect to buy a vehicle because of a program for which they don't qualify — doubly so when you add in the fact that prices shot up during Cash for Clunkers, creating a disincentive to buy. Finally, the White House claims that the increase in fourth-quarter production reported by the car manufacturers can be attributed to Cash for Clunkers. But here is a better reason: the economy is recovering accompanied by improved car sales. No manufacturer increases production — a decision with long-term consequences — based on the 30-day sales blip triggered by an event like Cash for Clunkers. With all respect to the White House, Edmunds.com thinks that instead of shooting the messenger, government officials should take heart from the core message of the analysis: the fundamentals of the auto marketplace are improving faster than the current sales numbers suggest. Isn't this a piece of good news we can all cheer?

The bad news with the Cash for Clunkers deal is that it has effectively stolen future car sales. We'll have to wait and see how the market reacts in the coming quarters.

NYBamaFan · October 31st, 2009, 10:20 PM

	Quote:	ValuJet
	Much worse. ...

Okay, but GWB refused to admit his mistakes which launched a war. That, to me, is a bit worse...

ValuJet · October 31st, 2009, 10:52 PM

	Quote:	NYBamaFan
	Okay, but GWB refused to admit his mistakes which launched a war. That, to me, is a bit worse...

Just my opinion, but Iraq was retaliation for Saddam's threat on Bush 41. WMD's, democracy in the Mideast, human rights abuses, etc. were the convenient reasons.

If I am right, Bush got what he wanted with the removal of Saddam and his two offspring. This is a major contributing factor of why we have a Democrat controlled Congress and a Democrat president.

I'm assuming the pendelum will swing the other way when the current regime manages to screw things up worse than Bush did.

swoop10 · October 31st, 2009, 11:07 PM

	Quote:	ValuJet
	Just my opinion, but Iraq was retaliation for Saddam's threat on Bush 41. WMD's, democracy in the Mideast, human rights abuses, etc. were the convenient reasons. If I am right, Bush got what he wanted with the removal of Saddam and his two offspring. This is a major contributing factor of why we have a Democrat controlled Congress and a Democrat president. I'm assuming the pendelum will swing the other way when the current regime manages to screw things up worse than Bush did.

Very good points VJ. IMO, this adminstration is the biggest bunch of crybabies I have ever seen. If anybody doesn't agree with every lie they tell they do their best to belittle them and make them seem irrelavent. The fact that CFC only helped in the present should be obvious. People who needed cars or would need cars very soon took advantage of a situation buy nobody else. The same goes for the first time buyers tax credit with houses and those were the only reasons the economy grew this quarter. Lets see what happens this quarter.

NYBamaFan · October 31st, 2009, 11:47 PM

	Quote:	ValuJet
	Just my opinion, but Iraq was retaliation for Saddam's threat on Bush 41. WMD's, democracy in the Mideast, human rights abuses, etc. were the convenient reasons. If I am right, Bush got what he wanted with the removal of Saddam and his two offspring. This is a major contributing factor of why we have a Democrat controlled Congress and a Democrat president. I'm assuming the pendelum will swing the other way when the current regime manages to screw things up worse than Bush did.

I think that you are right. I kinda hope that we never know for sure. If he ever admits to this, he should be imprisoned...

NationalTitles12 · November 1st, 2009, 01:14 AM

With all respect to the White House, Edmunds.com thinks that instead of shooting the messenger, government officials should take heart from the core message of the analysis: the fundamentals of the auto marketplace are improving faster than the current sales numbers suggest.

Isn't this a piece of good news we can all cheer?

No.

Not if you don't believe in the free market.

Not if you'd rather have people believe it was you that made the difference.

Not if it would destroy your plans to kick the free market to the curb in favor of tighter government control...by you.

Not if you're Barack Obama.

Or his Marxist cronies.

Boclive · November 1st, 2009, 09:31 AM

	Quote:	NYBamaFan
	I think that you are right. I kinda hope that we never know for sure. If he ever admits to this, he should be imprisoned...

No doubt VJ is right. Go ahead and put GWB in jail.

ValuJet · November 1st, 2009, 10:38 AM

	Quote:	Boclive
	No doubt VJ is right. Go ahead and put GWB in jail.

As I said, that's "just my opinion."

Maybe I am right and maybe not. I doubt we will ever know because there is a such thing as partisan political witch hunts.

I don't think the country has the stomach for an all out trial where we're sending former administration officials, presidents and vice presidents to prison. I think the crimes and misdeeds would have to be much greater than anything Clinton, Bush 43 or Obama could pull out of their hat.

Fortunately, our system of checks and balances prevents us from going through the occasional banana republic style coup and assassination.

NYBamaFan · November 1st, 2009, 10:57 AM

	Quote:	ValuJet
	...Fortunately, our system of checks and balances prevents us from going through the occasional banana republic style coup and assassination.

Amen, but it would be nice to see those checks and balances applied a bit more frequently. The current DNC congress and white house is piling on debt faster than I would ever have imagined possible. They just don't care about the future, so intent are they on "saving the day" today. And the GOP did the same thing (though at a less impressive rate) for 6 years under GWB.

When one party controls both of these branches of government, the checks and balances go out the window...

NationalTitles12 · November 1st, 2009, 11:41 AM

	Quote:	NYBamaFan
	Amen, but it would be nice to see those checks and balances applied a bit more frequently. The current DNC congress and white house is piling on debt faster than I would ever have imagined possible. They just don't care about the future, so intent are they on "saving the day" today. And the GOP did the same thing (though at a less impressive rate) for 6 years under GWB. When one party controls both of these branches of government, the checks and balances go out the window...

All too true.