I was taken by the quick response of UK security yesterday when a security alarm was set off by an acrid cloud of smoke in downtown London. UK and London security forces cordoned off several streets. Suspecting a chemical attack of some kind, chemical detox units were set up and ready to go

As it turns out, a Thai chef had been cooking his special extra-hot dip. He had no idea that this commotion was being caused by his intentionally scorched chili. Later, when he found out what happened, he was pretty confused. “I was making a spicy dip with extra-hot chilies that are deliberately burnt. To us it smells like burnt chili.”

At least three alarms have gone off in the mortgage business. Underestimating risk was the first alarm. The market was over-exuberant. The second alarm was mortgage company failure. For me this alarm was loudest. Many who were involved with sub-prime and unconventional loan types are now without jobs. Serious losses are on the books. The third alarm has been declining home prices. Oklahoma has been unscathed but many parts of the country have seen declines.

Meanwhile marketing executives are cooking up new offers for homeowners and homeowners to-be. Are we under threat of catastrophe? Shall we call for the undertaker?  Or have we just burned the sauce and need to start a new dish?