Just poking around the government web site to see if my car qualifies as a clunker. In most peoples mind's my car is definitely old enough and rough enough to be called a clunker. Unfortunately, the gas mileage of this car is high enough such that it does not qualify.
On the other hand, for the same model year various Rolls Royce*, Porsche, Mercedes and even Lamborghini* models do qualify as clunkers.
*If you are about to turn in your Rolls or Lamborghini please email me. I can give you a little more than the $4500 the dealer would.
Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts
Aug 9, 2009
Jan 8, 2009
Stimulus plan - perspective
Although I think a stimulus plan (and a big one) is the right thing to do I am stuck by the numbers being thrown around. Yesterday I heard that the total package could amount to as much as $1.3 Trillion.
A quick search of the net (only looking at a few results) indicates that in recent years there are about 130 million individual tax returns filed annually. That divides into the other figure nicely -- $10,000 per tax return (tax payer/family). Implementation of such a plan is a complex process involving art, science and politics but I can't help thinking about this in terms of sending every tax return filer a $10,000 rebate check!
A quick search of the net (only looking at a few results) indicates that in recent years there are about 130 million individual tax returns filed annually. That divides into the other figure nicely -- $10,000 per tax return (tax payer/family). Implementation of such a plan is a complex process involving art, science and politics but I can't help thinking about this in terms of sending every tax return filer a $10,000 rebate check!
Jan 6, 2009
Adventures in Loan Sharking
More junk mail from the banks this week. With rates at all time lows, a letter from Bank of America says we're pre-qualified for some huge loan amount. The reality is probably that this is boiler-plate text and if one were to apply they would get a much lower limit.
Anyway, the fun part is that the initial interest rate is 7% (sneaky, they call it 6.99%) but the fine print says that if you miss a payment they can adjust the rate up to 28% (sneaky, they call it 27.99%).
Obviously, if you can't make your payments QUADRUPLING the interest rate will only make it harder, if not impossible. Seems more like the financial equivalent of a mob enforcer breaking your legs if you can't pay up.
Anyway, the fun part is that the initial interest rate is 7% (sneaky, they call it 6.99%) but the fine print says that if you miss a payment they can adjust the rate up to 28% (sneaky, they call it 27.99%).
Obviously, if you can't make your payments QUADRUPLING the interest rate will only make it harder, if not impossible. Seems more like the financial equivalent of a mob enforcer breaking your legs if you can't pay up.
Dec 4, 2008
Another bail-out idea
Unfortunately, I have thought about this one even less than the other. But, what if instead of giving the big three cash to tide them over we treat it as a pre-payment on the design and delivery of massive amounts of mass transit projects?
Theoretically at least, this seems to address the automakers short term economic problem, the putting-people-to-work problem, the general economic stimulus problem and the fuel/global warming problem at the same time. I think that a key part of a fuel/global warming solution would not be hybrid or other cars getting 50 mile per gallon. That only delays the inevitable. Rather, a solution would include mass transit in urban areas that would allow you to go anywhere with the same comfort as, and more convenience than, a car.
Certainly it does not address the fact that the "big 3" need immediate operating capital and the fact that this money will be spent long before any such design could begin.
Theoretically at least, this seems to address the automakers short term economic problem, the putting-people-to-work problem, the general economic stimulus problem and the fuel/global warming problem at the same time. I think that a key part of a fuel/global warming solution would not be hybrid or other cars getting 50 mile per gallon. That only delays the inevitable. Rather, a solution would include mass transit in urban areas that would allow you to go anywhere with the same comfort as, and more convenience than, a car.
Certainly it does not address the fact that the "big 3" need immediate operating capital and the fact that this money will be spent long before any such design could begin.
Nov 22, 2008
Bailout idea
I haven't seen supporting data on this one way or another but I don't see much of downside to this idea.
What if the US instituted a policy that waived the 10% penalty of IRA withdrawal? Currently those funds in IRAs are fulfilling some role in the economy but to the owners of those funds they are not directly stimulating the economy. It seems to me that if people could draw on those funds now it would:
Update: Yes - I know that the fund holders who might do this will not be able to participate in the recovery, when it happens. This is an idea for a quick shot in the arm for the economy while helping people access their own money, in time of need, without an additional 10% penalty.
What if the US instituted a policy that waived the 10% penalty of IRA withdrawal? Currently those funds in IRAs are fulfilling some role in the economy but to the owners of those funds they are not directly stimulating the economy. It seems to me that if people could draw on those funds now it would:
- help many with urgent needs
- stimulate production
- put money into circulation
- boost tax revenue as those withdrawals would be treated as income
Update: Yes - I know that the fund holders who might do this will not be able to participate in the recovery, when it happens. This is an idea for a quick shot in the arm for the economy while helping people access their own money, in time of need, without an additional 10% penalty.
Sep 14, 2008
Other Side of the Coin
From Reuters.com --
Fashion Yachts, maker of luxury vessels... is seeing no let up in demand... [says] Fabrizio Politi, the founder and chief executive...
..."in the luxury sector, there's very strong growth in the high end,"
..."the most luxurious, the most costly product in the world ... are going pretty strongly."
...distinguished from their other sleek competitors by the use of unusual materials inside, such as gold leaf and crocodile skin...
Fashion Yachts, maker of luxury vessels... is seeing no let up in demand... [says] Fabrizio Politi, the founder and chief executive...
..."in the luxury sector, there's very strong growth in the high end,"
..."the most luxurious, the most costly product in the world ... are going pretty strongly."
...distinguished from their other sleek competitors by the use of unusual materials inside, such as gold leaf and crocodile skin...
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