1. Mish produces a very nice analysis of government sponsored entity (”GSE”), mortgage backed security packager Fannie Mae and its capital position. Needless to say, given the significant downturn in the housing market, predictable by us, but unpredictable by pie-in-sky financial professionals and government bureaucrats the world over, the mortgage giant is not looking too healthy in terms of capital level. I will be VERY surprised if one of the following two does not take place: 1. Taxpayers are forced to bail out this dubious firm; or, 2. the firm essentially goes under. At this point owning this stock (FNM) does not appear to be the most sound investment.

2. Ron Paul’s brand new book, The Revolution: A Manifesto, is a masterpiece work of common sense political honesty and frankness in an era of massive government foolishness and deception. Fortunately for freedom lovers everywhere, the book is making waves. It has reached the #1 spot on the NY Times best sellers list.

3. Grand Theft Auto IV, the latest release from Take-Two Interactive (TTWO) based on operating a street criminal bent on various forms of career development, sold an amazing 6 million copies in its first week in stores. At $500 million in retail value, this represented a new record, significantly topping Halo 3 from Microsoft, which was released in October 2007. The game is the fourth in the line of the highly addictive series based on the dour social mood activities of the criminal underworld. A very interesting blow out for Take-Two.

4. The “D.C. Madam”, who reportedly committed suicide to avoid a potentially lengthy prison term, and potentially had some serious clients on her list, had her suicide notes released this week. Reportedly, one of the notes quoted her as saying suicide was the only “exit strategy” she could think of. To me, language like that in a woman’s suicide note is kind of a strange thing. Maybe it’s just me, who knows?

5. Vallejo, CA, a city of roughly 100,000 residents, declared bankruptcy. The city seems to have been wracked by huge civil servant salaries and was facing a large decrease in property tax revenues due to the housing decline and an increase in foreclosures. Could municipal bonds be the next shoe to drop as many cities, counties and states struggle to pay the bills amidst a slowing economy?

6. The Republican Party, which foolishly trashed Ron Paul and his energetic supporters, looks ready to get thrashed come November. There is a significant liberty-supporting void in the two major parties. This will have to be rectified as liberty-lovers in America are a large contingent and growing daily. This is the home of liberty and if the Republicans do not take the mantle, there will be changes. With all the corruption, greed, war-mongering and general disregard for the Constitution and the rule of law, it is very little surprise that the Republican Party is bracing for a very tough November 2008.

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