Your Update on the Economy

Let's see, the Fed cut rates by 25 basis points, but the market wanted 50, so the Dow dropped 294.26 points.

The WSJ is saying that the U.S. mortgage crisis rivals the S&L meltdown.

While it's nice that they take it seriously, the US Credit/Insolvency crisis is already worse than the S&L meltdown. Still, it's a good read.


Own to rent cost ratio, the real estate equivalent of P/E:




The discount for the mortgage packages:

And while we are at it, how about MBIA, the world's largest bond insurer, getting $1B infusion from private equity firm?

This is not about someone finding a deal. It's about a private equity firm keeping MBIA alive while they offload their piece of the big sh&%pile on some other idiot.

Also, Washington Mutual is closing offices and laying off more than 3000 employees, including a friend of mine, because of mortgage and credit problems.

Also, Freddie Mac is looking at $5.5-$12 billion in additional losses. That's in addition to the $4.5 billion that it's already lost this year.

At the rate this is going, it will be raining Katz and Hutton on Wall Street.

Watch out for jumping finance professionals.