Yeah, About That Clunkers Deal

This is one of those times that being right just doesn’t feel as good. As many predicted, including several contributors on the blogs, car sales have drastically dropped in the aftermath of cash-for-clunkers. All the government subsidy did was waste taxpayer money and push car sales that would have happened anyway into a concentrated period:

General Motors Co. and Toyota Motor Corp., the biggest automakers in the U.S., said fourth-quarter sales may rise after a letdown from the “cash-for-clunkers” rebates dragged the industry to its second-worst month of 2009.

September U.S. sales fell 23 percent as the incentive program left dealers’ inventory depleted. With the government cash boosting demand in July and August, third-quarter sales ran at an annualized pace of 11.5 million cars and trucks, the strongest in a year.

Bloomberg has the whole story here.