by Tanta on 11/02/2007 09:44:00 AM

It has been a while since we measured distress level in the credit markets by a shallow survey of goofiness in the news. Since we have already noted solemnly the important news of the day--jobs report didn't smell bad--let us descend to news of the weird:

Mark to model? How about mark to flea market? "Prepare for the credit drama sequel" by stocking up on beaver pelts and glass beads.

Put on your blast goggles before you read this blinding flash of obvious: "Jump in foreclosure could hurt prices." Also, "contagion" is back.

But not to worry, it's not that contagious:

The soaring price of oil has yet to have a crippling effect on the economy, and inflation and unemployment figures remain in check, suggesting the economy is relatively healthy, despite the disastrous effects of the subprime collapse in the housing and lending arenas.

Bad bets on subprime mortgages have placed the financial sector in its current quagmire, not a lack of liquidity, and in the midst of sorting out the fallout from those decisions; it does not appear that Fed rate cuts are having the desired effect of propping up the flagging industry.

I don't know; what that means either, but fallout from the quagmire of the bad bets doesn't sound good.