Despite Pres. Obama’s efforts to assuage fears of economic collapse, the stock market is taking a beating today ― already the Dow is below 11,000 and the Nasdaq has lost 6%. At the root of the freefall are Standard & Poor’s downgrades of U.S. long-term debt, Fannie Mae and Freddie Mac, and a handful of other financial institutions to AA+ from AAA.



Are we headed for a double-dip recession? What does this mean for auto finance?



The way I see it, the current economic… Continue

Though savings rates are high and credit availability is improving, trouble on the home front will keep vehicle sales at bay.



“Housing prices are still falling by 3.9% across the country,” said Paul Taylor, chief economist of the National Automobile Dealers Association, during a panel discussion at the Conference of Automotive Remarketing. “That’s simply not helpful.”



In fact, housing-related problems have stymied economic recovery. The economy is on pace for 3% growth…

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The economy has been in a funk for months, with consumer spending and vehicle sales in the dumps. To help make sense of the future outlook, Bill Strauss, an economist at the Federal Reserve Bank of Chicago and a Member of AutoFinanceNews.net, will provide a comprehensive view of the U.S. economy and its effects on the auto finance sector.



Strauss joined the Chicago Fed in 1982, and his chief responsibilities include analyzing the current performance of both the Midwest economy and… Continue

Restoration of credit took center stage in President Barack Obama’s message to Congress last night. “The concern is that if we do not restart lending in this country, our recovery will be choked off before it even begins,” he said.



The president mentioned “auto” or “car” in his speech nine times last night. He talked about consumers’ ability to finance their cars, and a “re-tooled, re-imagined auto industry that can compete and win.” He pledged to invest $15 billion to develop, among… Continue