On another blog, I saw a post about the future results of "cash for clunkers." This seems to make a lot of sense. It goes something like (1st) used car market falls because everyone buys a new one instead (except that the very poor can not find a car because all of them have been clunked) (2nd) new car market also falls because (a) people can not make payments (b) banks still have morons in control of the loans and because (c) no one has any money left to continue buying cars. So continue to hold cash until you can get new cars for the repo price.