China Investment Corp plans to soon invest in U.S. taxpayer-subsidized investment funds that will acquire "toxic" mortgage-backed securities from the nation's banks. CIC believes these assets are a safer bet than buying into the .... Single -family home construction has been rising since March, a sign that falling home values and stimulus efforts such as a tax credit for first-time buyers are starting to reverse the housing meltdown that triggered the financial crisis. ...

The Treasury Department agreed to provide up to $200 billion in loans to the cash-starved firms, crucial sources of mortgage funding for banks and other lenders. It was a bid to reverse the prolonged housing and credit crisis. ... On October 12, for example, James Baker III, Republican stalwart and the man to helped install George W. as president during the Florida election fiasco in 2000, said, “This is bigger than the private sector can fix by itself.” ...

If your neighbors can live in their house for free, why should you pay the mortgage? If you're going to have to pay for the housing crisis anyway via taxes and looting of the U.S. Treasury by the banks, why not get something for yourself ... The housing wealth effect in reverse is also a powerful deflationary concept. People in aggregate can no longer use their homes as ATMs by taking out home equity lines of credit and other cash-out refinances to fuel consumption. ...

The subprime mortgage problem was grossly under-estimated. The Hat Trick Letter called it the beginning of an absolute bond contagion, a global credit market collapse correctly forecasted. Central bankers, led by the clueless USFed Chairman Bernanke, ... The Competing Currency War is brisk, more like a Reverse Beauty Pageant. As monetary crisis comes full circle, pushed by gargantuan government deficits on a global basis, the US$ will again resume its powerful decline. ...