To me, the problem is that banks are scared to loan money. Look what's happening to California. They rely on bank loans month to month, and the banks are afraid to loan to the State. So, if banks are getting picky, then car sales will go down, because not as many people will get loans to get new cars. Add on top of that, that people are nervous in the current economy, and so they may wait an extra month to buy a car, then that drops current sales as well.
So investors see all of this, and don't invest, or sell stock. The stock drops, and people get scared and sell more. That's the real scary part, once stocks drop, it's harder to get people's confidence back in them enough to buy. They have to start going up again, or there has to be the feeling that they will go up before people will buy significantly enough to affect it.
2010 Stock IBM 2SS/RS
I found $80 in my jeans pocket. The kid in me said "buy nerf guns and candy!" But then the adult in me said "buy vodka, nerf guns and candy!"