Bailout Watch 301: $200b Acronym To Provide Floorplanning

Yayyy! For a minute there the price of cars would have had to come down to a point people could afford them. Now GM no longer needs to sell cars, cuz their source of revenue is now people of [s]Soviet Union[/s] America. But wait, car prices would still have to come down, cuz lots were overflowing and floor plans were crushing dealers. But now the dealers don't need to sell cars anymore either! Yayyy! And yayy for congress and the administration for propping up high prices at a point no one is willing to afford or finance! Take that, uppity middle class!

Not to be questioning things, but isn't it the issue that people (with not perfect credit rating and income) can't get credit for a new car? How does the dealer getting a loan to have even more cars on the lot help that? When I see dealerships I'm not under the impression they wouldn't have enough vehicles already that they need to borrow more money to buy more vehicles. And wouldn't NOT giving them loans thin the herd even faster, especially the ones with low sales (exactly the brand-names that need to die)? Oh, right, free market is something like evolution with the survival of the fittest. The creationists can't let that happen.... What about the fact that the market has been saturated for years (with cheap loans, like the housing bubble) and there are so many more cars than drivers? Putting more vehicles on dealers' lots will help that, how? I'm not an expert in economy, but neither are the people in charge.

Its all part of a big shell game, and they think we aren't smart enough to understand it. It has nothing to do with selling vehicles to end buyers. It has everything to do with artificially propping up the auto maker's financial statements via "sales" of vehicles (delivered and paid for via loans of a different category) to give the illusion that the car makers have a viable business, in order to give the politicians the excuse to throw more money into the pit in a few month's time. Obviously nobody is buying now and starting up the plants again will be like, "why bother" if there isn't the means to complete the pyramid scheme. This is the stereotype of everything the "why deal with today what you can put off and make worse tomorrow" syndrome they have bought into. And once "in", its all good money after bad.

This is a glaring example of the fundamental weakness of the the bailout activity that currently taking place. Government monies can only stimulate supply, but not so much demand. So, they throw money at the manufactures - and their sales channels (dealers) because it's all they can do, quickly that is. Yes, it would be more effective (relatively speaking) if buyers were given a government rebate for buying a car, however it would take months for that money to get to through the sales channels and eventually manufactures and suppliers - and they have run out of time.