can cash for houses or cash for dairy cows be far behind . . .
Hey, since the cash-for-clunkers is being considered such a great success and it's apparently not costing anything based on the proponents use of the phrase "free money" then using Washington DC logic, this is only just the beginning.
Think about it. What is the most depressed industry out there right now . . . come on, you live in one. That's right. It's housing. Well, since we have all this "free money" apparently just appearing out of no where and since politicians just love to spend money(and we've seen that a plenty through the first half of this Administration) then it just follows that Mr. Obama, The Wicked Witch of the West Pelosi and the delusional one, Harry Reid should go back behind the magic curtain and find some more of that "free money" and give it to new home owners.
So let's do the calculations for the bumbling trio:
California and Nevada are two of the hardest hit states. Of course having folks like Pelosi and Reid representing those states pretty much tells you a thing or two about the logical thought process out there. That said, according to Real Estateabc.com, the median home price as of July 29th in the West reached $214,800.
So let's say we are giving $4,500 for a $20,000 car which means that the "free money" is paying for 22.5% of
the car cost
If the median home price in the West is currently $214,800 then based on the clunker percentage, the "free money" that should be available to potential new homeowners would be:
$214,800 X 22.5% = $48,330
Just think the impact on the housing market all this "free money" could have. Obama and Pelosi can keep going back behind the magic curtain and keep bring out bag after bag of "free money". This is euphoria. This is nirvana. I mean how much better can it get.
Ok, so let's look around and see what other wonderful deeds we can do with "free money". Hey, look again out west where so many dairy farmers are located and to Wisconsin, the cheese state. In all seriousness, the dairy farmers are struggling with depressed milk prices. They are so depressed that folks are trying to figure out how to reduce the supply. Well, hey, look no further than the bumbling trio and their magic bag of "free money".
To take milk out of the system, Obama should be willing to use some of the "free money" to buy milk cows and euthanize them. Logic says since Obama has stated publicly that he views older people in this country as expendable then a few milk cows shouldn't be any concern.
Ok so, let's do the math. A milk cow is worth, uhhh, well, I found the following on the home page of the Journal of Dairy Science:
For decisions involving the purchase of dairy cattle, cow cash value can be defined as net income over remaining herd life plus terminal salvage value. Cow net income per month was predicted from income curves, and life expectancy was estimated using standard life table techniques. Estimates of cow net income per month over 13 calvings were calculated for cows with 27 combinations of cow characteristics (including parity, stage of lactation, fertility, producing ability, salvage value, and health problems) in combination with nine milk and feed prices. Remaining herd life was estimated for each cow parity, pregnancy status, and stage of lactation. For each parity, lactation stage, and pregnancy status combination, appropriate estimates of cow net income per month over estimated remaining herd life were discounted to the cow’s present age, summed, and added to a terminal cow salvage value. These observations of cow cash value were analyzed by regression analysis. Parity, producing ability, and milk price had the most effect on cash value. Cash value was highest at freshening in second lactation with a consistent pattern of change after calving in all parities. Prediction equations can estimate the maximum price or depreciation for a particular animal and the relative values of different animals.
Ok, the guy who wrote that must be a former IRS actuarial! So this could be a bit more tricky, better hit the Internet again.
Well, I did find in Bestfarmbuys.com site that someone was selling a "brown swiss, bred to an angus for a Feb. 2010 calf" for $1000.00. Great. That makes the calculations much
easier.
Ok, so using the 22.5% Cash-for-Clunker figure
$1000 X 22.5% = $225
Obama-Pelosi-Reid could buy milk cows by going behind the magic curtain and get a bag of "free money" to cover the first $225 for each dairy cow that is sold and euthanized and thereby reducing the average dairy heard size down from the current average of 800 cows.
Gosh, I like magic . . .
I know this has all been silly but this is how absolutely absurd this is all getting. But hey, if you are looking for a dairy cow or a house or a new car then this whole magic curtain and bags of "free money" just make Liberals light up and gets that tingly feeling running down their legs . . .