Dogs on the Beach and Electric Cars

October 11, 2023

“When making decisions, “preserve optionality,” Ben Bernacke, Fed Chairman

I like dogs and dogs like me. We have family, neighbors, and friends that own dogs. I also like the beach for vacation and spend 3-5 weeks per year enjoying the sun and sand. We spend a lot of time fishing the surf. Great fun!

At our beaches dogs have to be on leashes and are restricted to specific times (after 5pm) during certain months. Some dog owners follow these rules, some do not. In the Fall, dogs are allowed on the beach and there are hundreds of them, big and small.

However, the problem is barking. A percentage of the dogs bark constantly. The owners have not trained the dogs to stop barking, and the noise travels far. So instead of having a quiet time on the beach, what we hear are dogs barking and sometimes fighting with each other. Some small dogs have a piercing bark.

Electric Car Rebates– The Biden Administration has issued new guidelines for EV car rebates. The US. Treasury will now give buyers $7,500 (tax free) which can be used as the “down payment” toward the new car purchase. So, with the purchase of a $50K car, the buyer puts $7,500 down and finances $42,500 for 6 years. The monthly payments at 5% interest rate will be $684.00 per month. This is a dangerous policy and certainly inflationary. The loan companies will be criticized in 2 years. Free money to make expensive purchases is a terrible policy. liken this to the sub-prime debacle. If a consumer needs $7,500 for a down payment, they cannot afford $684/monthly payment!

And-new EV buyers will need charging stations installed at their homes. That’s another $2,000. Plus $11/per charge on their electric bill.

And one more fact: Auto loan debt in the US is currently $1.5 trillion (historical record), credit card debt is $1.2 trillion (historical record), and school loans debt is $1.7 trillion.

Under no circumstances should Biden be encouraging more debt.