Wednesday, September 9, 2009

Cash for Clunkers blip

The sharp spike in demand suggests that the Cash for Clunkers car buying subsidy had only a very short lived effect on demand. 

Note the seasonal troughs in December.  Seems to validate my ex-girlfriend's father's practice of buying cars on Christmas eve.  If there is no one else around, the opportunity cost of selling a car to you is almost zero (The alternatives to agreement determine the terms of agreement.)

HT: Calculated Risk

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