Gas prices don't look like they are coming down any time soon. Today, it costs $500 more than it did last year to operate a car. That's a whole lot of money.

The industry is very sensitive to the fact that delinquencies have risen over the last two years. They have already taken steps to tighten underwriting standards -- to stop solicitations to risky customers.

Continued strong economic growth and falling gas prices in the fourth quarter leaves me hopeful that delinquencies will continue to fall.

The rise in auto and other consumer loan delinquencies reflects the avalanche of layoffs over the past year and a half. Until job growth gains upward momentum, relatively high levels of delinquencies will remain.

Signs of financial stress still are present. The persistent interest rate increases by the Federal Reserve and record high gas prices in the third quarter provided a one-two punch that continued to inflict pain on personal budgets.

She is so smart, it's scary. She's very much a theoretician, but it's always directed toward what's practical and possible.