Perki

Cash for Clunkers May Cost Up to $45,354 Per Vehicle

Interesting article and comments.
I believe the scrapping of 200,000 cars, provides an underestimated benefit to the auto industry, and indirectly but significantly, the financial industry.

The value of every used car in inventory, or held as collateral, will increase immediately due to the removal of 200,000 units. Granted, the increase may be small on an individual car basis, but quite significant across the millions of cars the financial industry is "holding" in auto inventory and consumer financing.

Finding Underpriced Assets in a Monetary Crisis

Interesting article. I believe Gold became a standard because everyone agreed it was a standard -- which is the nature of any standard -- people agree or believe it is so.

Much like the American dollar has been a standard. Now really finance is all a faith-based exercise. I BELIEVE that my bank will return my money when I ask, I BELIEVE gold is a rock-solid-over-the-ag... standard of value. I BELIEVE the dollar is a safe-haven because the US Government is standing behind it, etc.

The issue we have now is that the things we have believed are safe are showing us otherwise by falling like a string of dominoes.

Gold is not immune from this questioning. Pants and shoes though, may have REAL lasting value. Well, as long as it is fashionable to wear them.