One thing about the mortgage issues. (HLS/Pasadena Broker can comment better then I can) It appears to me that the secondary market has loosened up from the lockjaw that it went through in August. I think we will see a choppier secondary market. One that will be much more reactionary. When we see alot of announcements about hedge funds drying up or encountering problems, the secondary market will get tight… then when we go through periods of no bad news it will slack up a bit… Seeing as we have not any bad news for many weeks it seems things have indeed eased up somewhat. Similarly political end runs and loosening up FHA limits for new loans may also help grease the market. This is not what I want to happen but may indeed happen and continue to prolong the slide rather then to promote a healther and faster depreciation cycle.
