All that needs to be said has been said in that chart you have so kindly added to this discussion. Which reminds me that somehow, some way, I have to get some cash set aside to short FNM....that will be the steal of the century in the coming months.
Bravo. If only all Americans understood simple economics.
Best way to start an implosion would be for the government to go after Fannie and Freddie like the Clintons did to Microsoft. The witch hunt has already started, that's why the stocks are down during a roaring mortgage market. Fannie and Freddie do not represent the government pumping up the housing market. They are a two-headed monopoly, just like Microsoft, and just like Microsoft, they are helping the economy. Only the politicians can screw this up, and they seem to be ready to do it. They will never learn.
The bankruptcy bill will help Citigroup. They will be able to get more deadbeats to pay off their credit cards, probably by getting CitiFinancial home equity loans, for which they will rake in even more fees. Many, many people have lousy credit but are sitting on a ton of home equity.