As a marketing stunt, Cash4Gold Chief Jeff Aronson sent an open letter to the Obama administration regarding Cash-For-Clunkers.
WaPo: “Dear Leaders,” Aronson and co-founder Howard Mofshin wrote. “We have been impressed by the fact that, within just one week of inception, you successfully doled out $1,000,000,000.00 in consumer-confidence-building liquidity.
“In parallel fashion, though at an admittedly smaller scale and on the basis of our own entrepreneurship and self-financing . . . Cash4Gold has paid out more than $100,000,000.00 since our launch in 2007,” they wrote.
You lose existing jewelry assets in exchange for cash. That’s Cash4Gold. You lose existing vehicle assets in exchange for… wait… your own future $4,500 tax liability handed to you as a cash advance. So actually, to Mr. Aronson’s credit they’re similar. But not quite.
Cash4Gold actually sounds like a far better deal.
In both cases you are reducing your stock of assets (losing jewelry, destroying cars) to generate a short-term boost of income (cash, artificial auto sales). But if Cash4Gold came to you offering to take your gold for a $4,500 loan you then owe them back later, you’d tell them to go fly a kite.
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