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

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.

My concern is many people are having financial difficulties. Personal savings rates are down. There is less of a buffer to fall back on.