Over the past week, several investment banks began hosting situation room' type sessions to begin reckoning the damage to the subprime industry and the industry's prospects for the rest of the year. The mood among many analysts, investors and other market professionals was unquestionably downcast - and somewhat humbled - at press time.

For instance, Bear Stearns hosted a luncheon on March 9, during which participants observed that the present situation feels like a crisis because the industry is repricing very quickly over a matter of a couple of weeks, and that many macroeconomic issues surrounding the housing sector have gotten expressed in the latest ABX.HE index.

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