CapitalFools

Home Sales & True Inventory: No Good News

Excellent point in bringing up the number of vacant housing units not 'for sale or rent'. The number of vacant housing units, coupled with a credit crunch and rising mortgage rates, will only serve to prolong the downturn in the housing market. In addition to falling prices, wage growth and an improvement in housing affordability will lead to the eventual rebound in housing sales.

Wall Street Breakfast: Must-Know News

Excellent news source. Thanks Rachel.

Goldman Offers Macquarie a Deal it Can't Refuse for S. Korean Asset Manager

Interesting development - it looks like Goldman sees a lot more wealth creation in South Korea and is willing to spend to acquire assets from a proven wealth management firm.

Fannie Mae Earnings: It's Not Pretty

Fannie and Freddie should be private firms that compete in the marketplace, just like Citigroup and Washington Mutual. Extending the implicit backing of the government to these firms (Fannie and Freddie), and thus taxpayer dollars, without accompanying government oversight is poor policy. Although these firms are too big to fail this does not mean that their stockholders will not be wiped out entirely in the coming years. I'm bullish on their debt (government-backed) and bearish on the equity of either company.