Tuesday, August 4, 2009

The anti-mechanic act of 2009

AlphaNijna - That's what Cash for Clunkers might as well be called.

Here's the five day performance of Autozone(AZO) and O'Reilly Automotive (ORLY) versus the general market -->> they're trailing by over 5% as the government has decided to literally destroy their business.

I wasn't embellishing by saying "destroy their business" -->> auto dealers are required to destroy the engines of the trade-ins. Put aside concerns over the impact this will have on people who can only afford used cars (less supply will mean higher prices). Put aside concerns over taking $4500 from one group of people and handing it to someone else for a discretionary purchase. Even put aside the insanity of doing this for environmental reasons (go through the process of creating a new automobile versus keeping one that has already been produced?).
Isn't there just something sick about the government using our own money to encourage the destruction of a useful product? This just saddens me:

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