So they are going to "nationalize" it ?!?

[wallmann]

"The proposal to place both mortgage giants, which own or back $5.3 trillion in mortgages, into a government-run conservatorship also grew out of deep concern among foreign investors that the companies' debt might not be repaid"

There it is folks, in black and white. So many foreigners and Central banks bought up our toxic slime, that they were getting a bit antsy over Fannie and Freddie falling apart. I can only imagine the conversations they must have had with Paulson and Bernanke. I'm sure it went something like this: " Look boys, you told us this agency debt was secured by the single greatest thing on earth, the American home buyer. Now he's puking in his hat, and we're stuck with all this garbage you sold us. Now, you guys get together with your home boys and find a way to bail us out, or we're going to start selling your treasury notes on the open market to pay for our losses. You wouldn't want that, would you??"

More on my blog here........

Larry Potter, Pres.
KIM-LAR, INC.
Home of No Bank Qualifying Loans

[wallmann]

What I'm most amused of in this whole circus is just how good the media/corporate machine/CNBC/Wall Street spinmeisters are at conning the average person into believing them. I hang out on various message boards and inevitably the talk comes around to the economy and the things we see happening. I was shocked at how many "average" people were buying the standard line of crap, hook line and sinker. I never inject my opinions about any topic concerning the economy, the markets, etc, and I have never identified myself as a newsletter writer. I simply read those posts and try and get a "take" on what the average guy really thinks. Frankly I'm blown away at how well the establishment has brainwashed the average guy into believing anything they want him to believe.

The housing market is still reeling and falling. The average guy in the street wants to know where it ends. He had a big smile on his face when he bought that McMansion, but now he's got a big frown showing because it's not worth what he paid for it. When he bought, he didn't think for twenty seconds that maybe the market was overheated, nor the types of reasons it could have been. All he knew was that everyone was getting rich, living large and he wanted in. So he got in, and now he's weeping because he feels that he got "took". He is upset. He wants heads to roll. I must come from another planet, because frankly I find it amusing. I read these posts that guys put up and I desperately want to ask " how is it you put nothing down, and signed up for an adjustable mortgage, and now that it's adjusting higher you think they are screwing you?"

Larry

[wallmann]

But wait it gets deeper than that. I would love to ask one of these no down, adjustable rate whiners if they ever thought for one second that someone down the line would be buying their debt, and that if you don't make your payments, you'll be screwing people all the way down that line. But I don't, because they are all looking for sympathy and frankly I don't have any. I don't want to start fights, I just like to observe the mentality. But it reeks of "it's someone else's fault" to me and I'm tired of the "I'm not responsible for anything that happens bad to me" crowd.

Each day the numbers get worse. Unemployment at the official level is up to 6.1%. The true number is north of 12%. Inflation, which we are told every day has moderated, is running at 13% in the real world. Manufacturing which had a decent run because of the soft dollar, is getting killed on the fake dollar rebound. Foreclosures came in at over 1% for the first time since they started keeping those records, which I believe is like 30 something years. Yet, I firmly believe all of this is just the tip of the iceberg. We are in for an economic nightmare over the next several years, and bailing out Fannie and Freddie will NOT stop it.

Consider the bizarre nature of the beast here for a second. On Friday afternoon when the message hit that the FED was going to backstop Fannie and Freddie, the after hours trades went nuts. The financial's were soaring, and Wally Street was high fivin' each other. It was paradise with an ocean view. No one shook their heads and suggested "My Lord, two of the biggest entities the nation has ever seen has gone bankrupt because of greed, fraud and credit excess the likes of which has never been seen, and just because Uncle Sam is going to take all that debt and put it on their own books, the market feels relieved?! What is the logic? That anyone can do anything, at any time and it's all fine because Uncle Sam is there to bail them out?"

[boush]

Well atleast this crisis is somehow taking the whole world economy down with it ..

[wallmann]

At least here in the states, it is driving people in droves to
the new funding for short sales since there are so many
deals out there and since they only charge 1% plus a
$300 fee payable after the investor flips the property.

And since the investor's credit is not an issue, many
are coming to live webcast on Tues and Wed.

If you cannot get registered for the next webcast,
please keep trying as their server may be overloaded
with requests to watch.

Larry