Posted by: Christine Johnson | February 24, 2010

Do They Really Wonder Why?

The headline reads:

And I wonder if they are really that clueless. It’s the same thing as what happened with auto sales after the Cash for Clunkers program was over. Those who were on the verge of buying stepped up and bought a little early, but no one who would not have bought anyway (or very few) bought a car.
The same thing applies with the housing market. Instead of last year’s higher numbers near the end of the year meaning people were back in the market to purchase a home, it was only a sign that people were taking advantage of extra tax credits available to home buyers that weren’t going to be available in 2010.
You see, when the government messes around in something – especially temporarily – it will nearly always mess things up.
We won’t be able to gauge whether any market is recovering until the feds stop sticking their noses into everything. All of these temporary helps are not helping; they are putting tiny bandaids on gaping wounds and only delaying any kind of real indicating numbers from being seen. The federal government is propping things up for a short time, but then when the little popsicle sticks they’re propping with fall down, everyone shows amazement that things weren’t really getting any better.
We won’t have meaningful numbers to look at until the government stops messing around with temporary measures.
And, sometimes, big companies fail. Sometimes they have to fail because they cannot survive.


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