Cash For Clunkers Running On Empty
WASHINGTON – Former Federal Reserve Chairman Alan Greenspan says the success of the “cash for clunkers” auto rebate program is a matter of timing and reason for optimism.
Greenspan tells ABC that car and truck building had begun to rebound even before the program got under way. But, he adds that the “extraordinary response is a very important indicator that the state of confidence in the economy is beginning to pick up.”
He says that six months ago, such a program probably would have been a dud.
His comments came Sunday as the Obama administration said the program would have to be suspended unless the Senate provides $2 billion more.
Transportation Secretary Ray LaHood tells C-SPAN he expects the current $1 billion pool to be exhausted before Monday. The House already approved the additional $2 billion on Friday.
Car dealers and potential buyers are awaiting Senate action on replenishing the coffers of the “cash for clunkers” program.
The drive to give the program $2 billion could face a bumpy road in the Senate, where some lawmakers didn’t like the program the first time around.
Some simply don’t like the idea while others believe the fuel efficiency standards need to be higher and there’s concern about how the House version paid to keep the program going.
Meanwhile, New York Congressman Steve Israel is looking ahead. He says when the House returns from its summer break it should move to fine-tune the program, including a look at mileage standards.
But dealers and car buyers are just focusing on the here and now. They want Senate approval so the wildly popular program doesn’t grind to a halt, along with the boost it’s giving car sales.
