The name is, Bond. Covered Bond.

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Any mortgage on which payments were at least 60 days overdue would also have to be replaced, so at least in theory the pool would always include good loans, and their value would have to total at least 105 percent of the outstanding bonds. The mortgages would remain on the books of the bank that issued them, and the bank would stand to lose if the loans went bad. That was not the case in recent years when mortgages were sold to securitization pools. That led to an erosion of lending standards because the lender profited when the loan was made and sold, whether or not it was eventually repaid.

For the covered bond market to become a major source of mortgage money in the United States, investors will have to be willing to buy the bonds, accepting interest rates at least a little lower than the banks could get by borrowing money directly. The banks also will to need to be comfortable in making mortgage loans that they will keep on their balance sheets, tying up capital. In past decades, banks took for granted that they would do that. But in recent years fewer loans were kept on balance sheets. They were sold off as mortgage-backed securities, freeing up capital and enabling the banks to report higher profits.

Many of the risks of those mortgages stayed in the banking system, however, as banks kept some of the securities they issued or bought from other banks. That led to multibillion-dollar losses, which have made it harder for some banks to raise money and have made virtually all banks less willing to make mortgage loans. The covered loan market could bring in cash for mortgages, if both the banks and the investors are willing to cooperate. Those are not exactly sure things. "There’s not 100 percent certainty that it ever will become very significant," Mr. Paulson said.

Look for the effects of consumer confidence (or lack thereof) and watch the Dow as it digests Merrill and (possibly) Citi writedown news. The greenback has been surprisingly resilient in the face of such financial news. Whatever the next outside trigger event is, it will yield double-digit moves in bullion. Tread with care.

Happy Trading.