Government to offer loans to buy cars

StevieJ

Any wrote: »

My mother always said that best cure for hangover is to have what caused it in the first place...:p No, now this was a joke.

No joke, hair of the dog I think most vaccines follow this route as well :T

Generali

Any wrote: »

Because if people will spend money, other people (who make the product) will keep their jobs and everyone including banks will stop worrying that the person you lend (companies etc) will go out of business or job...
Because that is what I see as the cause of this panic.
Few banks went into trouble - and so what???? As it has been said before - the strong companies remain. The idiots went into trouble because they were greedy and lent to people they shouldn't have done. And going down is their punishment.
But what happened was that couple of thousand people were out of job and media made a huge story out of this, saying that within a few months we will be out of job and so people started to sit on their cash.

Those few thousand people would have found jobs, maybe retrain, maybe go and work for another bank. But unfortunately chain reaction followed.

Who pays though? The money has to come from somewhere and if tax money is being used to prop up one company it can't be spent elsewhere!

Generali

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StevieJ

Generali wrote: »

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What is all that about

Any

Generali wrote: »

Who pays though? The money has to come from somewhere and if tax money is being used to prop up one company it can't be spent elsewhere!

But the argument we are having here is not about the government to give cash to one company to keep them afloat.
The idea is to give us the money and we will choose which company to buy from.
Still - only the strongest will survive and competiveness remains..

The problem in past was that government just pumped money into companies that has been mentioned before - those companies never had the need to change their ways.

purch

as if there is a free market when there isn't.

...yes, that's the bit that get's forgotten.

Generali

Any wrote: »

But the argument we are having here is not about the government to give cash to one company to keep them afloat.
The idea is to give us the money and we will choose which company to buy from.
Still - only the strongest will survive and competiveness remains..

The problem in past was that government just pumped money into companies that has been mentioned before - those companies never had the need to change their ways.

Sorry to be a little dumb here.

Are you saying that the Government should cut taxes so consumers can decide where stimulus money should be directed?

StevieJ

Generali wrote: »

Sorry to be a little dumb here.

Are you saying that the Government should cut taxes so consumers can decide where stimulus money should be directed?

If you cut taxes (direct) some people will simply put the savings in the bank, or under the mattress

Wookster

Any wrote: »

The idea is to give us the money and we will choose which company to buy from.

That's hardly "secure" lending as you describe above, is it? When a business goes to a bank they want to see a business plan, sensitivity analysis and then analyse how much headroom there is. What you are proposing is a blank cheque with no security.

Any wrote: »

Still - only the strongest will survive and competiveness remains..

The problem in past was that government just pumped money into companies that has been mentioned before - those companies never had the need to change their ways.

Companies didn't need to change their ways until now - they had ample time to develop greener, alternate fuel cars and that hasn't happened until now.

The music has stopped and there are not enough chairs.

Lotus-eater

Any wrote: »

But the argument we are having here is not about the government to give cash to one company to keep them afloat.
The idea is to give us the money and we will choose which company to buy from.
Still - only the strongest will survive and competiveness remains..

As I said before, it is reckoned that about 70% of all new car sales are to companies.
How is this going to affect what cars companies buy? Not many are expanding and I can't see many changing their fleets atm either.

I think not alot. Therefore the whole thing is good publicity and may get a few desperate buyers who really can't afford a new car, but that need one, funding to do so.
But most private buyers that buy a new car are over 50. How many of those are in trouble with money? Not that many I am guessing.

So how many people is this actually going to effect. Virtually no one.