DEMAND DISAPPEARS

What a surprise! If we stop paying people to buy cars they stop buying cars. The same thing will happen when we stop paying people $8000 to buy houses. The new hose sales figures that are being touted will fall off the charts. The little bit of real demand has been pulled forward and exhausted. The government is running out of ways to falsely support our ruined economy. Remember this when you hear all of the economic numbers being reported. They reflect this influx of public monies, not real demand.

"It has been nearly a month since the car-buying frenzy of the Cash for Clunkers program ended, and many area auto dealers are longing for the good old days of July and August.

Like consumers nationwide, Massachusetts residents rushed to take advantage of the federal voucher program, which offered them up to $4,500 on old gas-guzzlers to be put toward the purchase of new, more fuel-efficient vehicles. About $65 million worth of vouchers were handed out statewide during the monthlong program that ended Aug. 24.

But once the federal money dried up, so did the sales rally. Now, customers at dealerships like Silko Honda in Raynham are few and far between, and inventory is once again accumulating."

Boston.com