Yeah, and I could see the bubble being even nastier than the sub-prime real estate one.
There's always two sides to these bubbles, 1. The paper-shuffling side, like the mortgage derivatives fiasco, and the actual physical assets like the property themselves, forclosures, and excess glut in a market.
The one thing that might have mitigated the real estate market bubble is that you can't move a plot of land. If there's a ton of repossessed used cars floating around, those are highly mobile, just throw them on a truck and take them anywhere you think you can get something for them. Which in turn depresses new car sales, existing stocks of used cars... ad infinitum.
So there's even more potential for the pain to be spread that much more evenly.