It's been obvious for some time that US mortgage giants, Fannie Mae and Freddie Mac are insolvent.  Although Government sponsored institutions, it has been assumed that the US government will not allow the two institutions to fail.

Having lost up to 90% of value in the last year, the collapse of the US housing market points to more losses at the two, not a recovery, so it is now being discussed as to what the US will actually do  in case of failure.

Obviously, the bondholders are concerned. So should we. Whether or not the US government steps in is irrelevant as the real problem is the disintegrating US economy. We are up the proverbial creek without a paddle.

It is too late to save the US housing market. It is too late to save  Fannie Mae and Freddie Mac. Hopefully, it's not too late to save yourself.

In the meantime, Martha and I are in Penzance UK where pirates once had a real grasp of the actual dynamic existing between government and the governed. Those entrusted with the public purse have sold out the citizenry to the highest bidder. If you think otherwise, you are not thinking at all. 

Note: To those who like shortbread, the shortbread at Cindy's in Penzance is worth the trip.

Darryl Robert Schoon

www.survivethecrisis.com

www.drschoon.com