Alm 2010

Problems on the market for Sub-prime mortgages are spreading to prime mortgages and of course to the overheated market for corporate lending used for leveraged buyouts. A flight to quality, both in stock and bond market. Yields on 10-year treasury notes down from 4.96 % to 4.74 % in a week. I think this storm brings a buying opportunity. If you are waiting for a crash on the stock market it has to come from "nowhere" and the problems we see now were known for several months. Many traders and investors are now saying " Look, do you remember what I said ?" I guess you have to wait for a while before we get a proper "crash".Although activity on the leveraged buyout scene will become less leveraged and it will become harder to get a new mortgage without proof of necessary income. Maybe this nervousness only helps the market to stay strong longer. I thought we would get a major correction this fall but maybe that will now only happen much later because of the self regulatory action we see now. It s amazing how well a market economy sometimes works.All the best