"Cash For Clunkers" Program, Estimated To Have Enough Funding For Four Months, Going Broke After One Week

Politico reports that "The program — aimed at giving at boost to the U.S. auto industry — was supposed to expire at the end of October. But in the one week since it took effect, it appears to have run dry of the $1 billion allocated to it, aides said Thursday... Last Friday, registration began for dealers who wanted to participate in the program, which is intended to encourage consumers to trade in their old cars for a credit program to purchase new fuel efficient cars. Under the rules that went into effect last week, the purchased vehicles must be 2008, 2009 or 2010 models, and the vehicles must be purchased between July and November to qualify. And consumers would be able to receive a $3,500-$4,500 discount from car dealerships when they trade in their old vehicles and purchase a new one."

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The funding for this program was estimated to last for four months. It lasted one week. This is a great way to build confidence in the projections for health care spending. Tweet