MORTGAGE CONCERNS HIT US MARKETS !

Markets have been volatile. US shares have tumbled amid fears that a wobble in the mortgage market may prompt a global credit crunch.
The Dow Jones index fell 199.24 points, or 1.5%, to 13,458.62. The S&P shed 1.7% and the Nasdaq lost 1.4%.
European indexes slumped earlier after the European Central Bank said it was pumping money into the banking market.
There also were reports that the US Federal Reserve was doing something similar to ensure that there was enough cash available for banks to use.
Analysts said that the markets would remain volatile in the near future.
"Markets are taking this latest news seriously with the risk appetite on the back foot," said David Corbell, analyst at IFR Markets.
Spreading out
The latest trigger for the slump was an announcement by French bank BNP Paribas that it was suspending three investment funds worth 2bn euros (£1.35bn) because of problems with the US sub-prime mortgage sector.
Sub-prime lenders offer loans to consumers with a poor credit history.
In recent months, the number of loan defaults has increased, raising concerns that the wobble in the housing market will spread into other parts of the economy and then start hurting other nations.
The conditions for the marketplace working through these issues are good
President George W Bush
The recent collapse of American Home Mortgage, the 10th largest lender in the US, have intensified those concerns.
On Thursday, the European Central Bank (ECB) said that it had pumped 95bn euros into the eurozone banking market to allay fears about a sub-prime credit crunch as lending slowed.
The move represented the ECB's single largest intervention in the banking sector since the immediate aftermath of the 9/11 attacks on the US in 2001.
Calling it a "fine-tuning operation", the ECB made the money in the form of loans, an offer taken up by 49 banks and other financial institutions.
Soothing words?
The declines in the US markets came despite attempts by President George W Bush to calm market fears.
Speaking after a meeting with his top economic advisers, President Bush acknowledged there had been "disquiet" on Wall Street over the housing slump.
But President Bush said he believed the markets were set for a "soft landing".
President Bush said he expected the markets to focus increasingly on the underlying health of the global economy and robust US prospects.
"The underpinnings of our economy are strong," he said, adding that second-quarter growth had been strong, while both inflation and unemployment remained low.
"So the conditions for the marketplace working through these issues are good. My hope is that the market, if it functions normally, will be able to yield a soft landing."

BBC NEWS REPORT.