economy versus stockmarket correction, page-19

No Nicleeson! You cant judge it by what the stockmarket does because that is driven by the hype! Here, listen to this:

Roger Cole, the Fed’s Director of Banking Supervision and Regulation, told the Senate Banking Committee today that he didn’t see “spillover effects from the problems in the subprime market to traditional mortgage portfolios….”

Also, it is not defaulters so much that is killing subprime mortgage lenders. It is the banks who are refusing to give them easy credit anymore! I certainly would not lend them my money either!