PRE MARKETS

Markets look to open much lower on the heels of a lousy initial jobless claims number (+455,000), underwhelming sales news from WMT/TGT and the stuff last night from AIG-

In addition, the WSJ with some interesting mortgage facts- mortgages made in the first part of 2007 are going bad at a pace that far outstrips those made in 2006- Facts from the FDIC shows that .91% of prime mortgages from 2007 were seriously delinquent after 12 months while the 2006 number was .33%. Seriously delinquent defined as in foreclosure or 90 days past due.

Anyone looking for a bottom in financials is looking in the wrong place if they don't focus on housing. Financials generally make/hold loans and that paper is generally secured by real estate- if the real estate goes down in value so do the loans- hence when real estate bottoms the financials will bottom- obviously those assets continue to decline in value- and looking at other data points for a bottom is probably the wrong place.