Feedback from a reader on subprime

Business Week - Bonfire of the Builders

My wife Sue read my Jim Cramer meltdown AKA Armageddon post yesterday and jokingly (I think) said, “Armageddon is coming? We need to stockpile food, head for the hills, and buy gold and sit on it until it hatches.” When I said, maybe things weren’t that bad, she said, “You were the one you mentioned Armageddon!” Hmmm.

Guess I better not tell her what happened today.

Two more mortgage companies announced they will be accepting no new loans, which is polite way of saying they’ve just gone kersplat on the pavement, meanwhile a mortgage REIT seems poised to follow and do a header into the concrete.

The CEO of Bear Stearns has been calling other investment bank CEOs to assure them that, by golly, everything is just peachy keen fine with the Bear and would they, pretty please with sugar on top, not pull their business. This reminds of the old DC dictum, that if a federal agency formally denies something, then the story must be bigger than you think.