Market troubles signals good times for some

The market helds its breath today, waiting to hear word on S&P ratings of bond insurers (such as MBIA and AMBAC). When it found out S&P was affirming the AAA ratings, markets soared.

This makes me laugh.

The very same institutions that are blamed for this subprime mess, rating agencies, still hold the same credibility?! It doesn't make any sense to me. I would think at this point, S&P would have very little value to investors, considering its ridiculous blunder.

But speaking of mortgages, this mornings report on existing home sales and prices was pretty glum for sellers, and continuing great news for buyers. Prices are down 4.6% compared to last year. At this rate, summer '08 is looking like a great market bottom to buy in.

For students graduating this year, this is excellent news. They are getting out at a time when interest rates are low, prices are low, and market is desperate to get rid of a 10-month glut of homes.

For myself, I am thinking about switching from leasing to buying as well. The tax benefits and equity are significant, IF I can foot the initial down payment. More to come later on this subject.