VegasBob

Fannie and Freddie: When the GSEs Go, So Goes the Dollar

Unemployment is increasing. Therefore real estate won't bottom until 2010-2013 because people without jobs can't buy houses. There are no more NINJA loans.

A potential Fannie/Freddie insolvency simply demonstrates what many foreign creditors are beginning to realize. The US is a profligate deadbeat that has no intention of paying anything back to anybody. The only action the US ever takes is to borrow more money. We are currently writing about $1 trillion of hot checks every year to pay for the US trade deficit and federal budget deficit.

This non-stop borrowing will never make the dollar stronger - only progressively weaker, until our foreign creditors have had enough and cut off our credit.