GOIH: Aug. 20, 2007---Market Overview

Last week the market gyrated widely due to trouble with Countrywide Financial (CFC) and other financial institutions. Volatility created tremendous trading opportunities in shares of the financial sector.

The Fed on Friday lowered the Discount Rate by 50 basis point to easy the liquidity problem of CFC and Thornburg Mortgage (TMA) who could not get financing in the commercial paper market to fund its originations. Both stocks rebounded Friday after the rate cut was announced.

However we see continued weakness in CFC. The cut in the Discount Rate is only a short term fix, allowing CFC to continue in business until a sale can be arranged. Without the rate cut, CFC was headed to bankruptcy court.

Moreover, since CFC has a bank and accepted deposits, any deposit over $100,000 the FDIC limit would have been wiped out along with the $11.5 billion of unsecured line of credit that CFC tapped on Thurs. to keep afloat.Last week we saw Etrade (NYSE:ETFC) gyrate widely on rumors that ETFC was freezing customers accounts and had problem in its mortgage portfolio. Etrade also has a bank with FDIC insured accounts subject to the $100,000 limit.

We reviewed ETFC latest 10Q and see where ETFC has a money market fund where customers deposits are placed until invested.We are doing an analysis of the financials of ETFC to determined whether the MM fund has the mortgage backed securities as investments supporting the yield the MM fund pays to customers.