Is 'Cash For Clunkers' Obama's Katrina Aftermath?

There's growing evidence that President Obama's "Cash For Clunkers" program is turning into his own version of the Hurricane Katrina snafu for which the Bush Administration drew criticism.

The gas-guzzler buy-out program designed to help the staggering U. S. auto industry has turned into a quagmire for dealers, hundreds of whom report they've not been paid by the government, or that payments are extremely slow in coming. One dealer said that of 102 "Cash For Clunkers" deals he's submitted for payment, he's been paid for just one. Some dealers reportedly are near financial collapse as a result of the failure by the government to pay their claims promptly.

One dealer cashed in during Cash for Clunkers, but owner Dave Billion is still waiting for the rest of his money from the government run program, $3.2 million.

"I wonder how long they'd wait if I owed them $3.2 million. I think they'd be at my door or at least my banker's door," Billion said.

Even though Billion is beginning to get some of his reimbursement money, he's still concerned because he says there doesn't seem to be any rhyme or reason to the program.

When Cash for Clunkers was first announced, dealers were supposed to be reimbursed within 10 days of a sale. Billion says that hasn't happened.

"The program started in July and we haven't gotten paid for cars we sold back then, but then on the other hand we got paid for a car we sold last week. They don't have an accurate format. It's not like they're taking the first deals that were submitted and working those. I don't know how they're doing it, no idea. I know it's very random" Billion said.

The program gave people rebates if they traded in gas-guzzling vehicles for more fuel-efficient new vehicles, and was propelled, in part, by environmentalists. Experts say the impact on the environment will not be noticeable.

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