Cash for Clunkers

I took my car in for service this weekend and ended up touring the local automall. It's Cash for Clunkers mania.

The three major U.S. automakers accounted for 47 percent of the first 80,000 "Cash for Clunkers" sales, the U.S. government said Monday.

 Through Saturday afternoon, the National Highway Traffic Safety Administration has processed 80,500 transactions, according to White House spokesman Robert Gibbs.

...

The Ford Focus is the top-selling vehicle in the program. Four of the top 10-selling vehicles are manufactured by Detroit's Big Three.

...

Thus far, 83 percent of trade-ins under the program are trucks, and 60 percent of new vehicle purchases are cars.

What I observed here in Sacramento around noon on Saturday was that the Toyota dealership was packed.  Not just the car lot, but the tables inside where folks haggle prices and such.  I saw a few folks around Ford.  Virtually nobody at Chrysler or Chevy.  Honda had a few folks milling around.  Nissan seemed empty.

Of course, the government program isn't being run very well.  Not exactly a shocker, but may create confusion for buyers and car dealers.

U.S. Senate Democrats sought a path forward on Monday to replenish the "cash for clunkers" auto sales incentive while the White House warned the program would cease at week's end without more money.

Republican doubts, potential procedural hurdles, and limited time for action muddled the outlook for supporters of a proposed $2 billion extension.

"They want to get something done this week," said a Democratic party source who was not authorized to speak for attribution about the matter. "The devil is in the details."

The first opportunity for the Senate to consider a remedy will be Tuesday after Democratic leaders huddle with President Barack Obama at the White House to discuss "clunker" prospects, health care legislation and other priorities

Stay tuned!

Of course, maybe a question is why older cars are excluded?  Seems like the oldest and dirtiest cars would be prior to 1984.

Friday Night Live

Well, quite a week in the market.  Quite a month. The market seems to be anticipating better days ahead. Even the job numbers out today were less horrible than expected.

Quite a week for me medically, as I’ve had a cavity filled, found out I need reading glasses, and was stung by something that caused my whole arm to swell up.  The latter required a trip to the doctor, a tetanus shot, and antibiotics.  Thank goodness we don’t have Obamacare and that I don’t live in Massachusetts, as I was able to see my doctor right away without being placed on a waiting list for a few months waiting for an appointment.  Looks like I get to keep the arm.  For now…

A few things to read:

• Best July Gain (8.6%) for DJIA since 1989, h/t Carpe Diem.
• China’s Hidden Debt Problem, h/t to Normxxx Ruminates.
• Getting California off the Tax Rollercoaster, h/t to TaxProf Blog.
• 58% of Republicans Have Doubts (that Obama was born in the US), h/t to Never Yet Melted.

As for me, I don’t know where he was born and I really don’t care.  I enjoy watching the back and forth between those telling the “truth” and those telling the “lies.”  I’m just not sure who is who.  Or is that whom?  I read somewhere once that people seem to define "truth" as "information that supports my position." They define "lies" as "information challenges what I think I already know."

Thursday's Tired Thoughts

• Did you get the feeling early this morning that today would be the day the market got tired? We burst out of the gates, went sideways, and faded at the end of the day.   Still in the green, but late-day selling is new to this rally and may be a sign that the move up is getting tired.
• The market does seem to be pricing in an economic recovery for later this year and into 2010.  Beyond that?  Too early to tell.
• Brett Farve has decided to stay retired.  Or has he?  He says he's still practicing.  Just retire Brett and let folks move on. 
• I'm glad I didn't take the Vikings to win it all in 2009-10.  Now they're back to the quarterback doldrums.
• Looks like we're going to get some sort of health care package out of Congress sometime this year.  I think this will be one of these things were costs grow at a faster pace than projected, leading to more deficit spending.  Interest payments on the national debt represent money that can't be spent elsewhere, and slows down economic growth.  But why worry about that?  Live in the now, baby.
• Disney's 3Q profit falls 26%.
• Could MSG cause weight gain?

Picture is of Ashley Tisdale.

Monday Randomosity

• Whoa, is this thing plugged in? The market was down slightly most of the day but managed to close in the positive. Advancers led decliners, and volume was light. 
• The market has come a long way (baby) the last two weeks.  I think a lot of folks are frustrated that they missed it.  Many have been trying to short the rallies and that certainly hasn't worked.
• Sarah Palin steps down.  I imagine she's going to go out on the talking circuit and cash in.
• As Barry Ritholtz noted over the weekend, we've had many stocks report better than expected earnings because of cutting costs.  Amgen today.  Biotechnology company Amgen Inc. said Monday second-quarter profit jumped 40 percent on a tax benefit and lower costs following a restructuring program, despite a continued decline in anemia drug sales.
• Verizon says "Hey, we can play that game!" and announces 8000 job cuts.
• Senate group omitting Democrats health care goals.  After weeks of secretive talks, a bipartisan group in the Senate edged closer Monday to a health care compromise that omits a requirement for businesses to offer coverage to their workers and lacks a government insurance option that President Barack Obama favors, according to numerous officials.
• Michael Vick reinstated to the NFL.  Remember, he's a fantasy stat killer.  So should Vick sign with a team and be named the starter, those receivers go to the bottom of the fantasy draft list. 
• If you're married, stay married!  It's not clear if the dissolution of a marriage directly affects health or if some other factor is at play. Still, "marital loss does seem to be a powerful force damaging health," said sociologist and study co-author Linda Waite. "And it seems to work about the same way for men and women, and for emotional well-being and physical health."
• Another reason to love summer... Watermelon!  Sugar water (nature's gatorade). 

Saturday Night(ish) Randomosity

• Economist’s View asks if Ben Bernanke should be reappointed?   Pros and cons at the link.  I think he should.  Predicting the future is a tough job, and the economic cycle has not been repealed.  I think the government has partnered with the Fed last year and this year to create a fiscal and monetary policy that will (eventually) lead to economic growth.
• I should never have opened up the Oreos this morning.  Just saying.
• Carpe Diem notes that the Federal minimum wage has increased, and that’s leading a Tennessee grocery store to reduce worker hours starting Monday.
• Picture is of ESPN’s Erin Andrews.  I was surfing and found a top Google trend list, where folks are looking for a peephole video of Erin undressing in her hotel room.
• Barry Ritholtz looks at the recent earnings and notes that they’ve mostly benefitted from “cost cutting and layoffs — rather than top line growth.”  Agreed.  Of course, that’s the first thing we should expect coming out of a recession as companies are still reacting to the economic slump from historical numbers.  Companies don’t traditionally start adding workers right away.  Instead, they’ll ask folks to work more hours until they’re sure things have turned around.  That won’t come until later.
• Say, California increased the minimum wage last year.  Just saying.
• Greg Mankiw wades into the national health care debate, and says it may be an issue of trust.
• Hat tip to Greg Mankiw for the link to Donald Marron, who notes the latest CBO does of reality on health care.  When the CBO initially blew the whistle on high costs and deficits last week, the President said something about appointing a commission or appointing a czar to find additional savings.  Well, “CBO estimates that the proposed legislation would save a paltry $2 billion over the next ten years, less than 1/500 of the 10-year cost of health reform.”
• More on the California budget, as officials concerned about new budget woes.

YouTube Surfing (and Killing the Day!)

So after watching some of the Fox Business shows, web-surfing, eating leftover pizza, and a few stacks of Oreos, I think I'm ready to start the day.

Bike ride... LOL. Enjoy the day!

In Edit: Video is Auto-Tune the News. LOL.

Saturday Morning(ish) Randomosity

• It’s Saturday.  Lets loosen up the tie and get casual for the weekend.  The stock market continues to ignore the current news and earnings reports from the rear-view mirror.  Of course, we all know the market looks to the future, right?
• I remain long the stock market.  Nothing to do here just yet except to ride the wave. 
• WSJ op-ed… The Economy has hit bottom.  The article doesn’t say whose bottom.  I’d think using the plural, “bottoms,” would be more accurate.   
• The big news this weekend is that the government thought about sending troops into Buffalo back in 2002 to arrest the Lackawanna Six terrorists, but Bush ultimately said no.  Of course, it would’ve been a big violation of the constitution for the government to do this.  We know George Bush would never have done anything to violate the constitution.
• Accrued Interest writes California’s Budget: Unfortunate that I know the truth?  By my estimation, California actually closed about $15 billion of its $26 billion deficit. Maybe less.  This is a fantastic read for the weekend.  Basically, it won’t be long before we’re reading about the big California budget deficit again.  The new budget just kicks the can down the road and relies on too rosy economic predictions.
• President Obama, who is on TV more than Leave it to Beaver reruns, again hawks health care.  A new study by the White House Council of Economic Advisers…  Oh, this study is produced by Obama’s White House.  I’d rather rely on the CBO.  What do you think Obama’s White House Econ Advisers are going to recommend?  Whatever their boss wants!  Ignore.
• ETFs to fight inflation.  Of course, there is no inflation right now.  But someday, when the jobs numbers start going gangbusters and wages start rising again, maybe we’ll see it.  For now, employers continue to fire people and cut wages.  Oh, and taxes are scheduled to go up next year when the Bush tax cuts expire.  And who knows how much taxes will go up with Obama’s health care package.  All that means less discretionary income for folks to buy stuff. 
• Downloaded the new version of Windows Live Writer for the home PC to help with blogging.  Looks a lot like the previous version!
• Rice University has some stuff up on Global Warming.