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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (168685)	12/3/2008 2:06:15 PM
From: Smiling Bob	Respond to of 306849

Does Hank have enough tbn1.google.com left in the bottle to make today's red stain disappear? Chart looking familiar bigcharts.marketwatch.com bigcharts.marketwatch.com

To: Smiling Bob who wrote (168685)	12/3/2008 2:23:20 PM
From: MulhollandDrive	Read Replies (2) \| Respond to of 306849

not to worry, cnbc just quoting that bill miller of legg mason says the bottom is in (he took big bets in both yahoo and countryslide <gg>) High-Yield Bond Index Surges to Distressed Level for 1st Time bloomberg.com. Dec. 3 (Bloomberg) -- The cost of protecting high-risk, high-yield corporate bonds from default in Europe soared above 1,000 basis points for the first time, a level investors consider distressed. Credit-default swaps on the Markit iTraxx Crossover Index of 50 companies with mostly sub-investment grade credit ratings increased 70 basis points to a record 1,010, according to JPMorgan Chase & Co. prices at 1:32 p.m. in London. “Markets are pricing somewhere between a recession and a depression, and that is what we are faced with,” said Philip Gisdakis, a Munich-based credit strategist at UniCredit SpA, Italy’s biggest bank. “We are already in a recession. The next economic phase will not be recession, but depression.” UniCredit is forecasting a 35 percent chance of a global depression as deteriorating labor markets undermine consumer confidence. Companies in the U.S. eliminated an estimated 250,000 jobs in November, the most since November 2001, a private report based on payroll data showed today. Credit-default swaps on U.K. gilts and U.S. Treasuries also rose to records, according to CMA Datavision. Five-year contracts used to hedge against losses on U.K. government debt increased 6 basis points to 113.5 and 10-year contracts climbed 9 to 116.5. Five-year contracts on Treasuries rose 2.5 basis points to a record 60.5, CMA prices show. Credit-default swaps, contracts conceived to protect bondholders against default, pay the buyer face value in exchange for the underlying securities or the cash equivalent should a country or company fail to adhere to its debt agreements. An increase indicates a deterioration in the perception of credit quality; a decline signals the opposite. Contracts on Treasuries are priced in euros and a basis point on a credit-default swap protecting 10 million euros ($12.7 million) of debt from default for five years is equivalent to 1,000 euros a year. The cost of protecting against default by North American companies also rose. The Markit CDX North America Investment Grade Index of 125 companies in the U.S. and Canada climbed 12 basis points to 271, according to Barclays Capital in New York.