Housing mortgage mess.

The US government fixes the housing mess but
Standard & Poor's said yesterday that freezing rates on subprime mortgage loans may lead to credit-rating reductions on some mortgage bonds. The government's plan may shrink the difference between interest payments received from home loans and the interest due to bondholders, S&P said in a report.

The government's plan makes investors in low-rated and unrated bonds backed by pools of subprime mortgages ``winners'' while bondholders of higher-rated securities will have their risks increase Owners of ``residuals,'' the unrated pieces of deals, are the first to have their interest end when homeowners can't meet their mortgage payments.

President Bush said that under the new plan, people that can't afford the higher payments of a mortgage rate resets but can afford the current starter rates can get relief in three ways: 1) refinancing into a new private loan; 2) moving into an Federal Housing Authority-Secure loan; or 3) by freezing their rate for 5-years.
Past housing downturns were sparked by recessions and job loss, and occurred mainly in local markets. Not this time. Years of lax lending standards and aggressive practices by Wall Street banks to fund risky loans have touched off a housing crisis that spans not only the U.S., but the globe.

Tracking the Dow on Thursday 6/12/07.

The President's booster,and the market propelled all the way.The day started with a weaker opening and ended with a bearish spin but still embeded within the bullish white candlestick.Follow through might open weaker before the major economic report on the potentially market-moving November Employment report due at 8:30AM ET.

An Advancing New candlestick.Both are unshaven at the bottom depicting that the bulls are still intact heading for the 'bull pivot at 13,691.70.Then on the volatility will start again.