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Mother doesn't know if the US will go into Recession. She thinks it maybe a close run thing. At the moment she thinks this is the "most difficult market since 1989-1990." The credit debacle and election year all add up to more unpredictable volatility. She thinks the housing bottom is close, I think she is being overly optimistic on that front.

Mother told me an apocalyptic story about her former manager. He came into her office and told her that if she "only" sold a few annuities she would get an award as a leading producer. She told him that all of her clients who could benefit from an annuity already had them. She soon left that firm as she was recruited out by the manager of another firm who manages that firms offices in 4 western states. They wanted her so much that they opened a branch office in her home. She has a rough commute from bedroom to office via a detour by the kitchen coffee pot.

The firm she was formerly with is in deep deep sub prime trouble and might have to spin off the brokerage biz. To help stay afloat they recently had to get a loan from a ME loan shark at 11%.

Another potential victim of the sub prime is the big WAMU...it too might be merged into another entity.

That is what is eventually going to solve the sub prime..the in trouble players will be merged into healthy players.