The U.S. Housing Market Crisis and the Faltering EU: The Bad Moon Keeps Rising

Here at home, the Washington Post reports that President Obama intends to double-down on government-centered remedies (read "failures") to deal with the ongoing housing market depression.  Our illustrious president, never shy to use Uncle Sam's grossly overleveraged credit cards, wants to extend government assistance to homeowners and real estate investors (with some caveats) who are "excessively indebted."  Meanwhile, the slow-motion dominoes continue to fall in the EU.  London's The Telegraph has Ambrose Evans-Pritchard opining about how EU's elites are further fueling an historic folly-in-the-making.  First, Greece, and now, very likely, Portugal are headed for crashes.  Can Spain and Italy be far behind?  And thereafter?         Here's the gist of Evans-Pritchard's alarm: Last month the European Central Bank exercised its droit du seigneur, exempting itself from loses on Greek bonds. The instant effect was to...(Read Full Post)