UGLY CHART OF THE WEEK

Phewwww

OIL falling is helping stocks, it may continue to unwind, money gotta go somewhere. FRE and FNM legislation basically pushing losses off onto American people....what else could they do?

More in a minute

Markets trying to consolidate and they may do just that, but we'll look into nature of market going forward to guage what kind of bottom may be in......quality of rally or addt'l selling.



Fannie Mae Bill May Get House Vote
By Annys Shin
Washington Post Staff WriterSaturday, October 8, 2005; Page D01
A House bill that would change how housing finance companies Fannie Mae and Freddie Mac are regulated is probably headed to the House floor this month, now that Republican leaders have brokered a compromise over a controversial affordable housing fund provision, members and House aides said yesterday.

The proposed fund would be financed by the profits of Fannie Mae and Freddie Mac and would distribute grants to support the construction of low-income housing. Conservative House members had objected to it out of concern the money would end up in the hands of liberal advocacy groups. Supporters of the fund estimated it could reach $1 billion in two years.

FAST The provision is part of a larger bill that would create an independent regulator for Fannie Mae and Freddie Mac after multibillion-dollar accounting scandals at both companies.
If the House passes the bill, it still faces obstacles to final passage. The White House has criticized the measure for not doing more to rein in the two companies, which critics contend have grown too large and pose a risk to the financial system.

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Treasury officials confirmed that bank examiners from both the Federal Reserve and the Office of the Comptroller are currently inspecting the books at both Fannie Mae and Freddie Mac. Paulson said in an interview published Tuesday in the New York Times that he believed the results of those examinations would provide an important signal of confidence for the markets.

Paulson said Tuesday that the continued operations of Fannie and Freddie — which guarantee or own almost half of the home mortgages in the country — would be "central to the speed with which we emerge from this housing correction."
Paulson made his comments in a speech in New York in which he again sought to reassure Americans that despite the recent turmoil, the nation's banking system is fundamentally sound.