Car sales set to fall further: it's good news!

Updated

None of Detroit's big three automakers are expected to turn a profit this year, which is hardly anything new. But instead of just being an American-made problem, economic woes are threatening the entire industry. Fortunereports that "Should sales turn out to be considerably weaker than expected, it would not only create larger losses but could also incite another round of suicidal price cutting that would seriously damage all of the companies."

I know: this is bad news for the car companies and for people who work in the industry. But the bottom-line is this: Federal Reserve data shows that consumer credit has been on the rise, and the average U.S. household's net worth sank for the first time since 2002. The percent of equity that the average homeowner has is the lowest its been since officials began tracking that figure in 1951.

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