1. Home sellers have gone from high-flight to humility very rapidly.

2. Our favorite friendly mortgage company, Countrywide Financial, sued for fraud.

3. The United States’ overbloated financial system is sliding into a potential liquidity trap.

4. A little later than our call, Merrill Lynch is now calling for a large fall in housing prices.

5. Mike Whitney calls it a “deflation economic time bomb.”

6. The feds are working to try to do something. But is the “cure” actually the poison?

Filed under: Politics, Social Mood, Economics, Six Packs