Winner: Cash for Clunkers Program --- Loser: Associated Press

In a recent AP story entitled: Trucks & SUVs are popular Cash for Clunkers sales, there's some very disingenuous reporting going on. The title of the story was obviously created so that news bureaus would latch on to it as it sounds like there's some real news there. But if you read the story (instead of just hearing the chosen highlights on TV or radio), there's a whole other story within the story. The AP actually switches vehicle class names from "SUV" to "Crossover" in the seventh paragraph when attempting to justify the title of the story! Huh? Yes, there's no SUV listed in the top 20 sales during the life of the program.Then the AP correctly states that the decent selling Ford Escape and the Honda CR-V (5th and 6th in program sales respectively) are Crossovers and not SUV's (but we know that SUV has become a pejorative term and therefore more useful in AP's sensationalized headline). Crossovers are not SUV's because they are built on "car based" frames and not "truck" frames and therefore drive and operate like cars. And not mentioned in the article is that these vehicles also get gas mileage comparable to (and in the case of the Ford Escape Hybrid model - much better), than most medium sized passenger cars. Yes, trucks were sold (people still need these vehicles) but not more than passenger cars and not enough of them to break the top 5 of all vehicles sold under the Clash for Clunkers program. Only two trucks (Ford F-150 and Chevrolet Silverado) cracked the top 10 in sales (8th and 10th respectively) and their combined sales were barely better than the number one seller during the life of the program - the Toyota Corolla. (Side note: the top 10 trade-ins during the program were all trucks, vans, and SUV's. But that didn't make it into this AP story. See the August 26th press release at http://www.cars.gov/ for all the details.)

But there was another story inside this story which wasn't reported widely. And I quote from the story's last paragraph, "Transportation Department officials have noted Cash for Clunkers achieved a 60 percent improvement in fuel efficiency because of the trade-ins." So beyond the positive economic benefits of this successful program, the environment and our country's security (less reliance on foreign oil) were also winners. Loser? The Associated Press because they're guilty of a disingenuous headline.

Un-American

There I said it. Maybe some others are thinking it but I'll say it. Those United States Senators who voted down the US Auto Bailout bill are simply un-American.

It is unconscionable that these lawmakers can not see past petty politics and grudges to do what's best for this country and support our manufacturing base. People ask, "What is wrong with America?" I say this is what is wrong with America. I never thought I'd see the day that a majority of the Republican Senators would simply turn their backs on the citizens of their country. These same Republican Senators have wrapped themselves in the flag issue after issue but when it comes to rescuing a fundamental industry for our country - they turn their backs. America has lost industry battles on many fronts (find a piece of major electronic equipment manufactured in the US). How many industries can we loose and still maintain our leadership on the world stage? And of course, other countries around the world subsidize their major industries and provide financial support when they are in crisis.

Here's some additional food for thought:

* Sweden just secured 3.4 billion in loans for the Swedish auto group.

* Germany has a controlling stake in Volkswagon AG.

* Auto makers in Europe are requesting 54 billion in loans to meet new emission requirements.

* It's projected that the first quarter of 2009 will see the highest rate of home foreclosure in the US. How many additional homes will be lost if one or two car companies go out of business? Can you say gasoline on a fire?

* How many pensioners rely on their Chrysler or GM pension checks to have a viable retirement? If they don't have these pension checks, how will they survive? Who will support these elderly?

* The bad credit market continues to negatively affect all areas of business including the car companies. Is that their fault? When gasoline spiked to an unheard of (and criminal) $4+ a gallon, was that the car companies fault? It was almost an act of economic terrorism perpetrated on the US market.

* How will states that currently have our nation's largest unemployment figures like Michigan, Ohio, and Indiana remain solvent and pay for millions of additional unemployment checks? And consider the loss of the sales tax revenue as people without jobs have no money to fuel their state's economy? And the Colleges and Universities in these states will not receive the money expected from their State Legislatures which means that tuition may have to rise to a point where enrollment is impacted.

* In World War Two, it was this country's manufacturing base that helped turn the tide against Germany and Japan. Instead of building cars, Ford, GM, and Chrysler built jeeps, tanks, fighters, and bombers. We had the manufacturing infrastructure to do this. If heaven forbid, we found ourselves in another large scale conflict, how would we able to match output with countries like China that has a huge manufacturing capacity?

This issue should not be clouded by past mistakes. It should not be about grudges of union vs. non-union states. We need to ask ourselves if we want America to survive the 21st century. Do we want America to remain an important economic force for good in the world? This is as important as bailing out Wall street as the collapse of two of these companies would be devastating to Main street America and to our friends, families, and neighbors. Is it morning in America or are we seeing the sunset of a once great nation?

The McCains and"Their" Economy

The McCains own:

* 10 Properties. But 6 are investments and they can only live out of 4 homes.

McCain spokesman Brian Rogers: “The reality is they have some investment properties and stuff. It’s not as if he lives in ten houses. That’s just not the case,” Rogers said. “The reality is they have four that actually could be considered houses they could use.”
For more on Properties see: http://www.mccainvminnesota.com/cribs.html

* 13 Cars. But John McCain himself is registered on only one.

What are the cars: 2004 Cadillac CTS, 2005 Volkswagen convertible, 2001 Honda sedan, 2007 Ford F-150 truck, 1960 Willys Jeep, 2008 Jeep Wrangler, 2000 Lincoln, 2001 GMC SUV, (3) 2000 NEV Gem electric vehicles, Toyota Prius (bought for the daughter). Cindy McCain mostly drives a Lexus which is registered to her family's beer business and has personalized plates that read "MS BUD." For more on Cars see: http://www.newsweek.com/id/160091

So is it any wonder that John McCain said on Meltdown Monday (9-15-08): "The fundamentals of our economy are strong." Because apparently, McCain's personal economy is quite strong. Unfortunately, that's not the case with the majority of Americans. McCain's comment (along with his inability to recall how many properties or cars the McCain's own) creates a picture of a candidate who has no grasp on the current state of our economy or even a grasp on what he owns. How can this man empathize with the rest of us?

Why Does Senator Barack Obama Hate Michigan?

Senator Barack Obama doesn't seem to like Michigan (I believe he's pointing at our star in the picture). He didn't want to help the democrats of Michigan have their voices heard by supporting some kind of primary re-vote. Of course, that wasn't in his best interest as he was satisfactorily ahead in the delegate count when the issue was brought up (maybe his tune will change if Sen. Clinton wins some more primaries).

But now, Sen. Obama wants to blame the Detroit auto industry for our nation's oil woes (see recent news story "Obama hits Big 3 on SUVs"). This is a well worn leftist doctrine to blame industry for nearly everything. You see according to this doctrine, industry is the faceless enemy out to rob us of our dollars, our freedoms, our future. Well I'm a centrist and I think the leftist doctrine is a bunch of hooey. What Sen. Obama fails to acknowledge is the "personal responsibility of each American" in regards to our environment and economy. The American consumer has had automobile choices (even from the Big 3) over the past decade that were reasonably fuel efficient. The American consumer voted with its pocketbook for SUVs and trucks. Well it is a free market (hear that Sen. Obama) and the American consumer wanted what its appetite demanded - large, hulking vehicles. The automotive companies simply met the desires of the consumers. Funny though, while Sen. Obama throws rocks at the Big 3, he fails to acknowledge that Toyota, Honda, Nissan, BMW and whole lot of brands also have large, hulking vehicles in their current portfolios. To borrow his own phrase "that's truth-telling" Sen. Obama.

The reality is the the stakes have changed. The world oil market has been infiltrated by speculators (like the housing market was until it went bust). Competition for available oil has increased because of a combination of world population and a thriving economies like those of China and some other emerging countries. Our own refining industry is overburdened. But in the end, we Americans are most to blame. We wanted what our psyches and appetites demanded - bigness. We Americans like all-you-can-eat buffets; biggie-sized meals; large McMansions; and big hulking vehicles. But Sen. Obama doesn't want us to look in the mirror. He would prefer to let us off the hook and shift the blame on to faceless industry. That's a shame. And that makes me question his overall judgment.

If Senator Obama wants to really establish some "truth-telling" in our country then he needs to call-out the American consumer. But he won't. Tell America that it needs to buy (more likely lease) more fuel efficient "available" alternatives (my suggestions besides the obvious hybrids: Honda Fit, Ford Focus, Toyota Yaris or this fall's Saturn Astra). Fuel efficient vehicles are sitting on retail lots across America gathering dust and pollen just waiting for a good home (though I hear a few are finally rolling off the lots since gas recently surpassed $3.50 a gallon). Now that's some "truth-telling" that I'd like to hear from Sen. Obama. Also, he needs to assure us Michiganders that he doesn't hate us.