From Chuck Butler, our Friend at EverBank

What's Happening:

This morning, RealtyTrac told us foreclosures fell 3% in June from 56% to 53%. Hmmm...Seems to me that we should still be on Amber with regards to foreclosures.

What We Say:

After all, even though the percentage dropped, 53% is still an astronomical number! Here's some more bad data...Bank repossessions almost tripled from a year ago. UGH! RealtyTrac also tells us that one in every 502 U.S. households was in some stage of foreclosure... Oh...And the markets still believe the Fed is going to fight inflation with higher interest rates? I know you can't say the markets are "wrong." But I can say they are total dolts for taking the Fed's bait, hook, line and sinker! I still say Big Ben Bernanke is going to keep the Fed's lending window open, and I surmise that this is simply because he "knows" exactly what troubles the financial institutions are having. Just yesterday the ratings agency, Fitch, announced that they were placing Merrill Lynch on rating watch negative. There are some major debt/credit problems out there. Remember last August? That's when the you-know-what first hit the fan for mortgage debt. Could this August hold more of the same meltdowns? We'll have to wait and see...