We sold off the securities to improve our margins, as well as absorb the other expenses, to better position ourselves for growth in 2006. We are focused on managing our balance sheet and slowing the growth of non-interest expenses.

We're looking for expenses that are coming in line and gross margins that are working, and that's what we saw. These results give us more confidence that Sears can continue to improve earnings in 2006.

You have to know what you're buying in to. Hybrid securities are going to be the most sensitive to any bad times in the credit markets.

Even though Wal-Mart is definitely in a better position than most retailers to absorb any shortfalls, others could be in for a very tough period ahead.

States are not in a position to absorb additional costs of this magnitude,

We are examining each of our product categories to determine how we can improve revenues, return gross margins to 20% percent or higher, and reduce operating expenses as we target a return to profitability in the second half of the calendar year.