The latest home mortgage worries have a very dangerous component to the stability of debt markets, that is the underlining risk regrading also commonly known as CDO's.
The algorithms that take 70% of a bundle of junk bonds mixed with 20% of AAA bonds or debt and 10% of AA and wiht a few stirrings of magic the whole package turns into AAA.
That is how big is the mortgage problem. I has touched from good to bad and worse stopping over all over the derivatives of merges and adquisitions to car financing, but lucky for us, the Chiense and Japanese pension system are the ones holding the bag. So you will be able to laugh out loud while you life under a 110% financed home, a 100% finanaced luxury car and maybe if you are lucky enough like The Donald 400% finanaced live style while claiming billions in assets.
(I personally know it. I worked for the Donald).
The dollar just hit and all time low against all major currencies, so here you haveit, a strong dollar policy, it means a real weak dollar, so every time you hear "we are commited to a strong dollar policy" it does not mean that "they" are doing anything to keep the dollar strong, is like been committed to rain in Las Vegas, it never rains. so spend five minutes and see what your dollar can buy around the planet, that might give you some food for thought why most people need to buy at Wal-Mart and not at Whole Foods or Carrefour.
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