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Viewpoint: Covered Bonds? In Tandem With Securitizations – Richard D. Simonds Jr. – ABSNET  

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US Credit Card Performance Continues on Downward Trend  – Credit card debt performance is expected to worsen in the second half of 2008, despite a slight dip in July’s charge-off rate from the prior month, according to Moody’s Investor Services’ mid-year review of the U.S. bank credit card sector. – Research Recap

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Fed repaid JPMorgan $87 billion for Lehman financing – … This means the NY Fed essentially loaned the funds to Lehman itself, marking an unprecedented expansion of the Fed’s lending program. … – Reuters

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Why the Fed can’t lower rates – Wondering why the Lehman failure and Monday’s 500 point DOW drop didn’t move the Fed to cut on Tuesday? Short term, a cut won’t help. Long term, cuts shrink an already very short runway to zero interest rate hell. -  ITulip.com 

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Did We Say No More Bailouts? – Liz Moyer – In an election year, pragmatism trumped conviction for the government in the case of AIG. – Forbes 

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The Statement of Sheila C. Bair Chairman Federal Deposit Insurance Corporation on A Review of Foreclosure Mitigation Efforts – thanks Marty Rosenblatt – FDIC.gov 

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LoanPerformance HPI July 2008 Data Update – HPI Decline Rate Holds, Improving Market Prospects – No-Acceleration” Rate of Decline Trend Continues -  … “As of July, nominal U.S. home prices declined 10.9 percent from a year ago,” said Mark Fleming, chief economist for First American CoreLogic, “while early August data indicates a 10.8 percent decline from a year ago. This continues the positive trend of no further acceleration in the pace of the rate of decline … thanks Bob Visini 

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Some might call it socialist capitalism – PAUL JACKSON – … And while the failure of AIG would certainly have been a mess, and bailing out the insurer saved us from that particular mess, it does little to restore any mechanism for balance to the broader financial markets: it’s the age old moral hazard issue at play, but now on a grand, unimaginable scale.  … – housingwwire

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PMI’s Housing and Mortgage Market Review – 14 pages contains – The Outlook -  Effective Affordability has been Less than Measured Affordability – Housing Market Indicators – Mortgage Market Indicators – and more – thanks Nate Purpura – PMI 
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Barney’s Rubble – Barney Frank didn’t like our recent editorial taking him to task for his longtime defense of Fannie Mae and Freddie Mac, and the Congressional baron defends himself in his signature style here. We’d let him have his say without comment except that his “whole story” is, well, far from the whole truth. … – Wall Street Journal 

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Jump in Mortgage Rates Disappoints Home Buyers – RUTH SIMON and JAMES R. HAGERTY – Wall Street Journal

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Refinance rush came to a halt as rates rose – The boom lasted three days, ending when Wall Street chaos fed investor fears anew. – Minneapolis Star Tribune

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The New Boomer Retirement Plan: Crash Pads? – MarketWatch

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Yesterday’s moves by the S.E.C to restrict abusive short-selling are a good first step–but there are additional moves the agency needs to make, like bringing back the Uptick Rule. Tom Brown explains at bankstocks.com 
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give and take away – Pimco’s leading fund has worst day in three years – As AIG suffered and flailed, Pacific Investment Management’s Bill Gross had his worst day in three years because his principal bond, Pimco Total Return Fund’s PTTRX, was down 1.38% on Tuesday. Pimco sold credit-default swaps that guarantee $760 million of debt issued by AIG, which Pimco would have had to pay out had AIG filed for bankruptcy. Just last week, Pimco had its best day when the government took the reins of Fannie Mae and Freddie Mac.  – Reuters
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Where Is the Plunge Protection Team?   – Justice Litle – Is the “Plunge Protection Team” still a force to be reckoned with in global markets? Or has the PPT’s day come and gone? Read on to find out…   “There will be no ‘glad confident morning’ – Taipan Publishing Group