Welcome to Motley Full Money. I'm Chris Ellin. I'm joined by Motley Full Senior

analyst Seth Jason and Shannon Zimmerin. Guys, good to see you. Good to see you. We're

short, fun body. You know, you're in Italy. James is up in the great state of Maine.

That's right. When do I get my day off? You know, sometime in the fall. We got a lot

to get through this week, including the latest economic and housing numbers, some wheeling

and dealing at GM and some new search and Microsoft. So we'll talk about all that. Share

a couple of stock ideas and air a few beefs.

Shannon, we're going to start with the big picture, which is frankly just not that good.

That's right. News out on Friday that the economy contracted at a 5.7% clip in the first

quarter. This is now the longest recession since World War II. On the housing front, the

National Association of Realtors reported that sales of existing homes rose in April,

but according to the Mortgage Bankers Association, 12% of homeowners are now either

behind on their mortgage or in foreclosure. And the foreclosure rate on primed fixed rate

loans has doubled over the last year. Is there any upside for investors in this news?

No, apparently, according to the market, there is a way. What me worry, kind of a Wall Street

response to really what is some fairly grim ongoing news on the subprime piece. You know,

nobody should be surprised at all. If for no other reason, but that we've been talking

about this here on this podcast for quite a while, that what was thought by some, but

not by us, to be a subprime contagion has now drifted into other areas of the mortgage

market as well. Or closure is not just for deadbeats anymore.

The title of a great blog post that everybody should go look at right now from my partner

here. So that was inevitable. You know, unless you're among the super wealthy like my partner

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