Merrill's $5 Billion hit to third-quarter earnings is just the start and not the end of financial meltdown from mortgage-securities business
Sam Adelton
Oct. 7, 2007

Alan Greenspan is confident that the financial meltdown from mortgage-securities business is coming to an end. The Fed Chief Bernanke is relieved that the worst is over and wants to stay put on rates. Relieved shareholders of acted to make Merrill's shares rise $1.89, or 2.5%, to $76.67 in 4 p.m. trading Friday on the New York Stock Exchange.

But little do all these people know the extent of the ‘walking of thin ice’ effect from the mortgage-securities business. This is just the ‘harmonic tremor’ before the actual volcano. The subprime mess may be over, but the actual mess is in traditional mortgages. Those mortgages are going on default, as home prices are ready to slide fast at a pace of 0.8% per month.

The fact is a 100-year banking cycle just topped two years back. It will a slow and steady decline in the financial infrastructure. The meltdown will accelerate in 2009 after Hillary is the new President.

Merrill's $5 Billion hit to third-quarter earnings is just the start and not the end of financial meltdown from mortgage-securities business
Sam Adelton
This is just the ‘harmonic tremor’ before the actual volcano. The subprime mess may be over. But the actual mess is in traditional mortgages.
READ MORE>>

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