Time 9:04

Market commentary:


Rate of mortgage delinquencies rises - WSJ
WSJ reports even as federal and state govts come under growing pressure to respond to the mortgage crisis, new data show that the pace at which mortgages are going delinquent is speeding up. A new report by Equifax, the credit bureau, and Moody's Economy.com shows that 4.46% of mortgages were at least 30 days past due at the end of the first quarter, up from 3.98% in the fourth quarter and up 2.92% a year earlier. Delinquencies in the first quarter varied sharply by state, but were highest in Puerto Rico (8.03%), Florida (7.03%) and Nevada (6.59%.) The foreclosure rate, meanwhile, jumped to 1.39%, from 1.08% at the end of last year and 0.58% a year earlier. The increases in mortgage delinquencies and foreclosures were the biggest since at least 2000, when the cos began collecting these data.

Conclusion: Between this story and the story from the last blog we clearly see the financial crisis and the lack of liquidity is alive and well. We need to begin establishing financial shorts again. Watch LEH, JEF, LAZ, GFIG, FCSX, MF.