Just a quick note this evening, there just isn't much to report. The first week in October should bring some reality back to the stock market but there doesn't seem to be a bear in the house after September's almost unbelievable rally. We didn't forget that the Fed intervened in order to preserve what's left of the economy.
The WSJ reports that the news in mortgage space is the Swiss bank UBS. Recently, UBS had some losses in one of their hedge funds and got rid of their CEO. Now, UBS plans to write down nearly $3.5 billion in assets, including assets based on US supprime mortgages. This is a large number and makes UBS a high profile casualty and will raise questions about their management of securities since they expanded into the US.
These are the WSJ's thoughts but we wanted to keep you up to date on the continuing problems in the mortgage world. So, while the Fed has lowered rates and the stock market thinks the problem is "taken care of", the mortgage world is still in disarray. The fallout from the housing market will affect the economy and the stock market for some time.
We'll be back tomorrow.