Ilargi: US home prices have a record drop, and foreclosure filings have a record surge, to 10.000 every day. James Lockhart says the Freddie and Fannie debt is explicitly guaranteed by the US government, while the September 7 legal document that outlines the takeover of Fannie and Freddie explicitly denies any such guarantee.
Meanwhile, the FDIC claims that the US government will start guaranteeing bad mortgages. That may seem nice and all, but is it really such a great idea for the US taxpayer to start buying up grossly overvalued real estate, that will keep on losing value regardless?
This is quite a litany of fiscal nightmares that Ilargi lists. Including Roubini forecasting the closure of the markets and wide spread panic. Which seems to have just happened. Peacenik is only hours away from going off-grid and out of touch. It should be a couple of interesting hours. BTW, in the face of this news, 80 % of the commentors on The Big Picture say they will be buying stocks today. Peacenik guesses that is good news.
