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To: Rocket Red who wrote (88714)	8/17/2007 10:39:04 AM
From: sporky	Read Replies (2) \| Respond to of 314078

By problems do you mean the subprime market which is a miniscule part of the mortgage market of which even a smaller percentage actually defaults of which is all backed by hard assets. Yes I can see how that will be a big problem.

To: Rocket Red who wrote (88714)	8/17/2007 10:43:02 AM
From: TheSlowLane	Read Replies (1) \| Respond to of 314078

Coxe just said the same thing on the call today. He said that the Fed cut addresses one immediate aspect of the problem, which is liquidity, but that we are not out of the woods and that the conditions are firmly in place for a significant move up in gold. Coxe is not a goldbug, by any stretch of the imagination, either.

To: Rocket Red who wrote (88714)	8/17/2007 10:53:15 AM
From: LoneClone	Read Replies (4) \| Respond to of 314078

Perspective from Laurence Roulston: “First, sub prime mortgages represent only a small portion of the overall mortgage market in the United States. Actual defaults on sub prime mortgages have been about 5% to date. So far, 85% of borrowers in that market continue to make timely payments. Inevitably, the default figures will get worse. But, remember, those loans are all backed by real estate. Undoubtedly, the value of the real estate will fall short of the loan amount in those cases where the borrowers default. To explore the potential implication, assume the delinquency rate was to soar to 25% and, as an example, suppose that in each of those cases the realized value of the collateral falls 25% short of the loan amount. Then, the overall sub prime market would lose about 7% of its value. That is hardly a catastrophic event for the world economy.” LC