The "cash for clunkers" program has been a great success -- too successful, in fact. Some auto dealers are nearly out of cars. That poses a problem for the Obama administration. It would like the stimulus coming from the initiative to continue through August and September, but vehicle supply will undercut that.
So how can the government maintain interest in the program when buyers are becoming frustrated by lack of supply? The answer may be to hand out "clunker" IOUs, so that customers can return to dealers when the model that they want comes in.