I just read a great, but technical, article on Bloomberg.com regarding the current state of affairs in the world of Sub Prime lending. If you are following along the crazy ups and downs of the real estate world as of late you will find this article interesting. The bond markets have been volatile lately moving higher on fears that the Fed will get involved in monetary policy to combat inflation. We have also heard that existing home sales are much stronger than expected. But, keen investors will take note that aggressive incentives by home builders may be behind much of the sales increase as existing home sales fell by the largest margin since 1970 according to the Bloomberg article.

[tags]Sub Prime, Lending, Loans, Real Estate, Bonds[/tags]