Time to put the reputation of this blog on the line with…
(drum roll, please)
My prediction for 2009!!!!
If I am wrong, oh well. If I am right, remember where you heard it first and worship my genius.
Okay, here is is…
The big three have their bail out. But the reason they needed it was because they couldn’t sell enough cars. This is because the economy was bad, sure. If that was true then why didn’t Honda, Toyota and Mazda need a bailout? Perhaps it is because the big three make cars that such and nobody wants to buy them. So how do you fix that?
Easy! Just give a tax credit for buying American. How about a nice $2000 credit (not unlike the Prius incentive a few years ago) if you buy a big gas guzzling piece of crap American car that will break down sooner and have a terrible resale value? With the right financing, sounds like a deal.
So that is my prediction. This year we will continue to see terrible new car sales from the big three and after the bailout money doesn’t save them we will all be tempted to buy them with a big tax credit.
What does that mean for the smart shoppers who care about mileage and good quality vehicles? It means that their tax dollars will go to people buy crap.
Free market capitalism? No. Democratic Communism? Maybe. We can elect our leaders but we can’t chose where our money goes. We can buy what we want but we are punished for not choosing the government’s choice for us.
I hope I am wrong this time.