…the next low (read: the next support level) is 1222 of June 13th, 2006. (!!!)

We appear to have bounced back off that level, but that support level is not holding strongly. Don’t be suprised if it falls over.

Countrywide is all but gone. That is the last of the non-bank lenders.

What is even more shocking is – bigger resets are going to hit in September and October! You could argue that we are now pricing in these resets, but that would suggest the market is efficient. Don’t for a second think the consumer is going to keep going – Walmart is right, proceeding forward the consumer is tapped.

Good luck,

Phil