More people are falling behind on car loan payments.   A report issued by TransUnion indicated that on average,  81 out of 1000 people were more than 60 days late on their loan payments between July and September, up sharply from 73 out of 1000 during the 2nd quarter of the year.

As more people fall behind on their payments, banks will be forced to charge higher fees.   This action is likely to put pressure on auto sales.   The bottom line is the future for both banks and autos is looking worse.

Many people are pointing to the rallying stock market as an indication a turn around is close for the banking and loan sectors.   The truth is,  there is such a rush to hedge against the coming implosion that the commodities and metals are running to record highs again and this is making the market look strong.

I see nothing but very painful times ahead for both banks and borrowers in 2010.