Pat Shuff

Shrinking America's Debt Burden - Maybe

Americans Owe Less, Thanks to Write-Downs

Those trends do not, however, necessarily indicate that Americans have paid down their debts and are starting to lead the more frugal lives that some financial planners have been recommending for years. There has undoubtedly been some of that, but the declines also indicate that banks have been forced to write off a lot of bad debts and have grown more stingy in granting credit . . .”

www.ritholtz.com/blog/.../

Writing down welched private debt with nuclear-powered printing press output also shrinks public debt. Oughta work (except for the unemployment.) As with any Ponzi scheme be sure to be amongst the first in line, later recipients tend to get short shrifted. See: Bernie & friends.

WSJ Preps for an FHA / Ginnie Mae Bailout

The WSj editorial page hammered Fannie, Freddie for ten years. No one listened then either or payed attention or learned anything. Nor from S&Ls or LatAm debt crises or Asian Contagions. If you can't lick'm, join'm. Victim or victimizer take your pick. After awhile, a long while, arriving somewhere beyond caring, one comes to prefer it that way.

The FHA Meltdown

Wall Street greed and politician's depravity have always existed, but this time an uncritical view of diversity let them both out of their cages at the same time. A mere mention much more attempted taming meets with Roy Horn of Siegfried and Roy treatment.

Fannie and Freddie: Sticking it to the Taxpayers

It is as well worth noting that Fannie Mae increased its book of business (retained mortgages and MBS guaranteed) by $70bn in the past two months (to $3.22 TN). And, according to Bloomberg data, y-t-d issuance of agency (Fannie, Freddie, and Ginnie) MBS is already approaching $1.3 TN, compared to full year 2008’s $1.153 TN, 2007’s $1.148 TN, 2006’s $903bn, and 2005’s $958bn.

So, it has reached the point where Washington is underwriting the majority of existing mortgage debt throughout the system and is now backing essentially the entire amount of net new mortgage Credit.

www.prudentbear.com/in...

Fannie, Freddie, Ginnie, FHA, FHLB, VA have essentially become the Mortgage Dept., the Ministry of Housing.
The cumulative and combined losses are mounting by the month as lending standards are weakened by the week.
In this brave new world of nationalized housing finance replacing the former private capital sources, the solution being sought is to double down with more lax lending standards identical but larger than previous proven failure.

Taking Issue with David Dreman

Charts of 'Dreman' open and closed end funds.
Each of the fund managers badly needs replacement
by a dart tossing primate, trust me I know.

finance.yahoo.com/q/bc...