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During the past year, the media and our government have trumpeted the success of the Cash For Clunkers
program, designed to lift the auto industry out of a sales slump. Auto buyers who turned in a car with low
fuel efficiency could receive $3,500 to $4,500 towards the purchase of a new vehicle. Under the terms of the
program, the vehicles turned in had to be scrapped, regardless of condition.

30 years ago the standard auto loan was 24 months. This got stretched out to 36 months, and then to 48 months.
The industry used cheap credit as a way of selling to unqualified buyers. The creation of subprime mortgages
follows in the path of auto finance companies. The final step in this process is to bribe consumers into buying
autos.

Website Edmunds.com which provides pricing information on used vehicles estimated that of the 690,000
vehicles sold under the program, only 125,000 of the sales would not have been made without the rebates. The
cost of the direct subsidies per incremental vehicle sale was $24,000.