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The recent "cash for clunkers" program is the leading cause for the lack of cars on dealer lots, but a recent decision by the company to institute a 60 day guarantee is also going to help keep demand higher than expected for many dealerships. The plan should entice some otherwise wary auto buyers, but not all General Motors dealerships are so enthusiastic about the plan, and have decided not to participate at all.

The good news is that we are seeing some signs that the woes the auto industry has been facing the past couple of years could be starting to ease. GM's vice chairman, Tom Stephens, stated that "showroom traffic is getting better and consumer confidence is improving."

The bad news is that car shoppers may not be able to find some of the cars that are you looking for, and when they do will not be able to haggle with dealers as much as in recent months. With inventories running so lean, dealerships are going to be less eager to give out big incentives and price cuts to encourage people to make the leap into one of their cars.

General Motors stated that it is currently reviewing sales projections and analyzing what increases, if any, it will make to its production figures in the months to come.

Is consumer confidence really building so substantially, or is most of this inventory depletion still a ripple effect of the "cash for clunkers" program? That answer to that question remains to be seen. What is your overall opinion on the economy? Have we seen the bottom, or should we brace ourselves for more rough times ahead?