I love the unintended consequences of the failed stimulus bill. This is due to the tax credit of between $4,200 and $5,500 for people who purchase an electric vehicle. Enter the "road-worthy" electric vehicle AKA the golf cart.
The intent was to get people to replace their existing vehicles with electric-power cars, not golf carts. In this way it is similar to the Cash for Clunkers, except there was no requirement to retire an existing vehicle and no limit on the number or type of vehicles one could claim. Now American taxpayers will pay for road-worthy golf carts, and at least theoretically subsidize entire fleets of them for later resale and profit by hoarders. After all, tax credits are nothing more than subsidies funded by other American taxpayers.
If you want a stock trade to take advantage of this stupidity I offer Textron (TXT) which owns E-Z-Go which is a large manufacturer of golf carts and electric ATVs. Now let the "great golf cart bubble" start to grow!
No comments:
Post a Comment