Economics Update

We have two different data points, first mortgage delinquencies were up in the 3^rd quarter, but we also saw that U.S. household debt shrunk by 0.9% over the same period.

So, are people paying down their debts, or are they having their debts written down by banks that realize that they will never get the money?

Coupled with this, crude oil is getting close to $90/bbl again, which may put another crimp in the economy.

Finally, the other shoe has dropped for monoliner bond insurer Ambac, and it has filed for bankruptcy, chapter 11 reorg, not chapter 7 liquidation.