As the breadth of damage inflicted by Hurricane Katrina remains largely unknown to both those on scene and those within the financial sector, ABS industry analysts are thus far projecting a relatively modest impact on mortgage and home equity loan markets. A more substantial affect is however anticipated throughout the economy as rising gas prices and the likelihood of another federal interest rate hike later this month threaten to stifle economic expansion expectations and the rate of consumer spending.

In particular, low-to-moderate income earners - largely those that patronize the subprime lending arena - are expected to feel the sting of rising interest rates and gas prices.

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