Photo credit: AP/David Zalubowski
The over-subscribed ‘Cash for clunkers’ program could be squashed having only been operational for four days following its announcement.
The $1 billion dollar funding that supported the program is exhausted. The House has voted to replenish the program with $2 billion, but the Senate is yet to vote on it.
The White House has indicated that if the Senate does not approve the additional monies by Wednesday, the program will be suspended.
Meanwhile, the very popular program which was devised to give a filip to the ailing US auto industry and a boost to the economy appears to have done so.
Alan Greenspan, former Federal Reserve Chairman said that the success of the program is an indicator of the state of confidence that Americans have in the economy. Greenspan opined that had a similar program been attempted several months ago, “it would be a dud”.
Given the uncertainty as regards to additional funding, the National Automotive Association is urging dealerships not to buy more clunkers until the issue is resolved.
