Believers in "V"-shaped recovery gave it up this week, as did many hoping for any near-term recovery at all. The 10-year T-note broke cleanly through its post-May 3.28 percent low, taking mortgages below 5 percent, also for the first time since spring.

The manner in which the bond market cascaded said more than the fact. There was no new, single-piece, trend-changing report, just the cumulative weight of news describing an end to the May-July bright interval, and the beginning of an economic flattening or outright stall sometime in August.

The U.S. Government is actively moving to help individuals currently facing foreclosure. This is great news for the distressed homeowner and individuals who support the Government's efforts, but it may be bad news for those who seek to purchase distressed real estate, particularly in the pre-foreclosure phase. The effect on the economy also remains to be seen.