30 DEC 2009, Wednesday

1. Folks...please do not blow off the XMas Eve news announcement by the US Treasury to completely back Fannie Mae and Freddie Mac.  Originally, the taxpayer was to back $400 billion and now it is unlimited.  The portfolio of those two housing behemoths is close to $5 trillion dollars.  No small sum!
2. Effectively, this is a "backdoor TARP" program!
3. This tells me that the Treasury Department is convinced that the worst of the burst real estate bubble is yet to come. Why else would they be providing unlimited financial support for the two largest Zombie banks the world (outside Japan) has ever seen?
4. As we move into a new year, the stock market’s technically weak rally and the repercussions of the burst real estate will follow along. So stay flexible with your investment strategy because we could be in for another hard fall.
5. Global warming...Fantastic news!  French high court rules carbon tax unconstitutionial.
6. Also, who says the science is settled and there is no disagreement among doctorates and scientists???