Car sales continue very strong

The level of auto sales is still relatively low, but the growth rate—up at 19.7% annualized rate over the past two years—is truly impressive. February sales came in much stronger than expected, and I doubt there was anyone in the world who imagined, back in Feb. '09, that auto sales would be growing 20% per year for the next two years. This kind of growth is having ripple effects all up and down the economy. It shows that consumers have regained a good deal of their confidence and their financial health; that financing is available; that automakers are going to be ramping up production and hiring plans; that dealers will be feeling better; and of course GDP will be stronger.

It's also impressive that used car prices continue to rise, and are now at a new all-time high. The car market has come roaring back to life. This recovery has legs.