A very bad precedent is being set by this, the $8K tax credit and the “cash for clunkers” program.

Eventually, people will just not buy stuff if there is no gov. incentive to buy it. They’ll just put off major purchases, hoping for a handout.

It is exactly the way the fed views deflation. People won’t buy now if they expect the price to come down.

It’s like govt-mandated deflation, as far as I can see.