fool me twice...

Auto MPG: The Economics of CAFE, Part One

CAFE makes older cars more desirable. Look at the prices of vintage autos: the cars built before CAFE existed are in much higher demand.

The pre-CAFE 1970 Camaro had a 370 hp V8, but the post-CAFE 1980 Camaro had a 170 hp V8. These cars have the same bodystyle and the newer model includes some better technology and better fuel economy, but today a 1970 Camaro is worth 5 to 10 times as much as a 1980 Camaro.

This "improvement" to CAFE will have the perverse effect of persuading drivers to keep their old, polluting, capable cars rather than pay a lot more for a newer, cleaner, less-capable car.

With or without CAFE, the only thing that will EVER have an impact on gasoline consumption is the price of gasoline.

Problems That Detroit Bailout I Doesn't Address

"No matter how much money Washington sends to Detroit, it won't give consumers a reason to buy cars."

That sums it up. This entire Detroit debate only addresses a symptom of the recession. Better to fix the economy and cure the disease.

The Prius Conundrum

Right on. There is currently no incentive to reduce energy usage in the US.

And the Prius? No payback, just the smug satisfaction of being ostensibly green.