How Slow Can You Go

Bloomberg (06.22.06):

"An index of U.S. leading economic indicators fell in May by the most in nine months, signaling the robust pace of growth earlier this year will give way to a slower expansion." U.S. Economy: Leading Index Falls by Most in 9 Months

The slowdown in the housing market is catching up. Inflation still isn't under control either. Bloomberg (06.22.06):

"U.S. stocks declined, putting the market back on pace for a loss this week, after reports suggested the Federal Reserve will have to keep raising interest rates as economic growth slows." U.S. Stocks Fall as Reports Suggest Inflation, Lower Growth

Which means higher payments for the ARMs and interest-only mortgages ripening up in the next few months. Which means more defaults. Which means...? Ahhh, you get the picture.