9505!?!

Despite the markets closing at new highs for 2009, we continue to remain cautious, utilizing asset-backed securities with consistent cash flows and short durations. Sure the NAR came out today saying that existing home sales rose 7.2% in July to a seasonally adjusted annual rate of 5.24 million. But what about the 201 borrowers with $453.1 billion in debt that have defaulted this year. And what about the continued rise in defaults - not just sub-prime, but fixed-rate prime mortgages that now account for 1 in 3 foreclosure starts. Bob Baur, the chief global economist at Principal Global Investors said, "Consumer spending normally is the driver of recoveries at the beginning. That's not happening this time." Our economy is consumer driven, I'll tell you what's not happening. Why are people okay with calling this a recovery when there is no sight of a driver.

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