Better news on sub-prime

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One day does not a trend make, but the news today on mortgages and housing was notably positive, contributing in part to a large stock market gain. In an attempt at even-handedness, today’s headlines:

--Good as Goldman: ‘Goldman Sachs Group Inc does not expect to take any significant asset write-downs, its chief executive said on Tuesday, easing investor fears of a worsening credit crisis and sending financial shares soaring.’

--Pending home sales: ‘Pending home sales rose unexpectedly in September from the month before but were still far lower than a year ago, data from the National Association of Realtors showed.

--Countrywide shares rose slightly after its monthly operations report showed a 48% decline in loan originations from year-ago levels, but also showed, according to Reuters, ‘credit quality has begun to stabilize...’

--On the other hand... ‘Bank of America Corp. said Tuesday it will take a $3 billion debt-related writedown in the fourth quarter and warned its losses could grow, adding to fears the nation’s housing and mortgage-lending slump might exact a greater toll than in the wretched third quarter -- when industrywide writedowns topped $40 billion.’

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