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ProShares UltraShort S&P500 Message Board

  • sold2quick sold2quick Aug 4, 2009 10:26 PM Flag

    Cash for Clunkers

    So the government is paying people to turn in their old cars and buy new ones to help spur on the economy.

    The government is taking on more debt to encourage people to take on even more debt to buy something that depreciates 20% the day you buy it and chances are is made in a foreign country.

    This is a solid plan and will likely add another 100-150 points to the S&P this week.

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    • and new car sales fall off a cliff when cash for clunkers money runs out.

    • It is not a solid plan yet there is no sense going there. Yet it will be spun that way and will move the market up more. There is no real selling in this market so we will see the market go higher. Worse unemployment numbers than expected but less than the month before. Are there more unemployed? Yes. Is it worse than expected? Yes. So the market will buy. Who is buying? The GS, MS, JPM, etc. They are making a lot of money trading using ETF's. Huge amounts of cash allows them to buy one and short the other. Buy the stocks and short the ETF. Sure winner. Rigged casino.

    • I believe most people are smart enough to see this is a band aid approach in trying to solve more serious problems.

    • It's not long before we have a new wave of defaults - this time on the car loans that the newly unemployed will not be able to pay. The Obama administration is truly clueless, but then again this might be their grand plan to completely wreck the US as we know it and install the dear leader's marxist utopia.

16.41+0.15(+0.92%)Aug 24 4:00 PMEDT