Cash for Clunkers Shell Game

Since the government's delays in reimbursing dealers for cash for clunker deals has been causing dealers to drop out of the program, GM is offering to advance cash to the dealers in the meantime, according to this WSJ article.

Since GM is now owned by the government and the UAW, any money GM advances to the dealers is really the government's money. So - GM bleeds money because they can't profitably sell cars - then they declare bankruptcy and are bailed out by the government - then the government offers cash to people to buy more cars - then the government can't pay people fast enough - so, they offer to temporarily shift their money from GM.

Will GM have to create a separate group to handle these requests that does the same thing as the government group that processes reimbursements?

Your tax dollars at work (twice)!

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