Ford Motor Co. (NYSE: F) is having awful trouble selling its cars. Its product mix, heavily dominated by gas-guzzling SUVs and pick-ups, is pushing the company to greater and greater financial loses in the U.S. In some recent months, sales year-over-year have dropped well in excess of 20%.

There has been some speculation that Ford may have to raise more money. The federal government helped with that, giving the car company a $445 million tax refund. The financial windfall comes from interest due on overpayments made by the firm during that past several years. According to Reuters, "the interest owed stems from tax overpayments in 1994, 1992, and the period 1983-1989."

Ford's stock rallied 6% on the news, moving up to $4.86.

Investors should be warned that the share increase is a bit of a "sucker rally." Ford's problems may extend well into 2009, especially if oil stays above $140 and consumer spending remains low.

Ford's stock still has a ways to drop.

Douglas A. McIntyre is an editor at 247wallst.com.

The U.S. government made the decision to offer tax rebates to help offset the economic slump. Based on recent unemployment figures, that may not be working.

Rising commodities and oil prices may be a more significant threat to consumers than the very modest growth in personal income.

That begs the issue of whether the U.S. is putting capital distributed to tax-payers in the right place. It may be that giving consumers subsidies to offset oil and gas prices is a much more effective way to keep the economy on track. And, that is what South Korea plans to do.

According to Bloomberg, the government in South Korea will put up about $10 billion "to help consumers and businesses cope with surging energy costs." These benefits will go mostly to those with modest incomes and small companies. Arguably, the rich and large corporations are better able to cope with high energy costs.

Estimates vary, but the U.S. economy is 10 to 15 times larger than South Korea's, so any similar program in the U.S. could cost $120 billion.

Not a ton of money to keep the skids greased.

Douglas A. McIntyre is an editor at 247wallst.com.

I read an interesting article on tax rebates and vacation spending. A lot of theories are floating around concerning the exact stimulative effect President Bush's $168 billion program will have on the ailing economy. If the article I read is correct, then the vacation industry may be a big beneficiary.

An expert on the tourism sector, economist Steve Morse of the University of Tennessee, suggests that timing is the key here. Since the rebate monies will be flowing at the same time as Americans start to plan and go on their vacations, Morse believes that economic activities related to enjoying time off will see a tangible boost. In fact, he further states that vacations are something that people might not necessarily deny themselves, even in times of recession. He points out that people might tend to take on a bit of debt to fund vacations since they see it as a "right of life," as he puts it.

I see the logic, especially the "right of life" issue. Not only are vacations important to everyone, but they are sort of comparable to toys at Christmas -- know how they say that people won't stop giving toys to their children even during hard times? Well, vacations are like toys for adults (and if the adults have children, as many do, then vacations are like toys for adults and children). And adults will not cease gifting themselves during the summertime.

I have had some clients ask me, what industry I think will benefit from the $600 rebate checks that are due to be sent out as part of the U.S. economic stimulus package. I think airlines will benefit, especially lower cost carriers like Southwest (NYSE: LUV) and Jet Blue (NASDAQ: JBLU).

The USA Today has an article about the kind of vacation you can have for $600. The article says: "With most Americans expecting to receive a tax rebate of up to $600 ($1,200 for married couples), there are plenty of ways to get the most vacation for your buck, say travel experts. Whether it's a cruise, a tropical paradise, or family travel, these trips can all be done for under $600 a person."

Because we aren't talking about flying around the world or across the Atlantic for that measure, trips to Las Vegas or Orlando, for example, will fit the family, and of course people need a way to get to these destinations, so that's how the airlines become interesting. Throw into the mix potentially stable or even lower fuel costs, and for investors looking for a way to play the "Rebate check" game, you may want to take a look at the airlines.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 4/2/08

On Saturday, President Bush warned that the government must guard against going too far in trying to fix the troubled economy. "If we were to pursue some of the sweeping government solutions that we hear about in Washington, we would make a complicated problem even worse -- and end up hurting far more homeowners than we help."

"Democrats know that wait-and-see is not a responsible strategy for an economy that is teetering on the brink of recession," said Senate Majority Leader Harry Reid. "The president continues to convince himself that inaction is the cure-all for the economic problems hurting hardworking Americans." Democrats intend to strengthen the economy with measures dealing with housing, energy efficiency, and renewable energy.

President Bush said the recently passed program of tax rebates should begin to lift the economy in the second quarter of the year and have an even stronger impact in the third quarter. But he urged caution about doing more, particularly about the crisis in the housing market.

With the prospects of a full blown recession looking more and more likely, everyone is hoping that something can be done to ward off the dreaded "R" word. Could tax rebates be the cure that we are looking to find?

One thing is for sure, no one is going to complain about getting a quick check from the government, but will rebates really be enough to keep the country out of a recession? The answer, sadly, is probably not. What they could achieve however, is to reduce the pain and the length of any recession that may occur this year.

Looking back to 2001 we get some evidence that tax rebates could at least provide some relief. When the country was headed into the 2001 recession, President Bush decided to add refund of $300 for individuals and $600 per household. The 2001 package, while not able to stave off a recession, is credited with part of the reason why the recession was so short lived.