Spanish sayings and subprime woes

Sir, there is a Spanish saying that goes “we were many and then granny gave birth”. It came to my mind when reading Michael Waldorf’s letter “What Paulson and others are concerned about is manipulation of the market” June 11, in reply to some articles in FT that put forward the unkind possibility that some hedge funds could be against “loan modifications” that help mortgage payers, since they have a vested interest in the defaults (a short position). I say this because the market manipulation here denounced by Waldorf, namely that some credit coverage sellers (a long position) are buying up defaulted mortgages at par in order to keep up the value of their portfolio, only indicates another factor to be added to the current messy confusion that surrounds the subprime-affair. Seems that while some do not mind increasing the number of homeless, others are more concerned that we would notice it. The much rumbling and mumbling we hear also reminds of another Spanish saying that says “when the river sounds it is because it brings stones”.