More Mauldin: Update on The Continuing Credit Crisis

This one is also very good. It provides great perspective on where we're at and how far we still have to go before the economy will recover. For one thing, Mauldin runs the numbers on the current foreclosure and credit crisis. One of every 16 homes in the United States is now in serious delinquency status! And its going to get worse! With Fannie Mae and Freddie Mac both leveraged about 50 to 1, even a 2% default rate will have unimaginable ripple effects worldwide, and especially in the banking system.

Thoughts on the Continuing Credit Crisis

One more note. Keep your eyes on the financial news, especially over the weekend. In addition to new bank closures by the FDIC each weekend, there is a strong sense that an immense bailout of Fannie Mae and Freddie Mac is imminent. Added to the union strike declared last night against Boeing, things will be volatile and interesting over the next few days!