2 TIDBITS

NEW YORK (AP) -- Back in April, Goldman Sachs CEO Lloyd Blankfein said that the credit crisis, if it were a football game, was "probably in the third or fourth quarter." Eight months later, Goldman analysts are saying the current credit cycle has only now reached half-time.

Investment research analysts at Goldman issued a report Monday that said banks are "only halfway through a three-year credit cycle" -- indicating how much more prolonged than predicted the industry's struggles will be.

and this

Discussion at Monday's forum, sponsored by the federal Office of Thrift Supervision, focused on how broad the government's intervention should be, rather than whether the government should play any role at all. The U.S. is on track for 2.25 million foreclosures this year, more than double traditional levels.

New data released Monday show that more than half of all homeowners who had their loans modified to make the payments more affordable in the first half of the year are already in default again.

The data raise questions about whether government money may be better spent on creating jobs, rather than averting foreclosures, said John Reich, director of the federal Office of Thrift Supervision. "I do have concerns about allocating federal resources," to such an effort, he said.

But the reports aren't detailed enough to show how well the programs are working or which borrowers have been most helped, said Sheila Bair, chairman of the Federal Deposit Insurance Corp. and a proponent of broadening loan assistance efforts.

VIX still HIGHLY elevated here....not budging much today