1.  good analysis of Fed Statement - Today’s Fed Statement - David Kotok - includes: … “Open market operations” means the Fed will print money … means, the Fed will go into the mortgage finance market and do whatever it takes to drive the mortgage interest rate lower … This last item is very important.  It says that the Fed will do what it needs to do to keep any inflation expectation from creeping into the pricing of longer-term Treasury notes and bonds.  The Fed is now transparent about this policy and wants to remove any market-driven guesswork. - … lots more - Cumberland Advisors

2.  Why Secretary Geithner’s China Comments Matter  - Did Geithner bash China on purpose? Thoughts from Bob Eisenbeis at Cumberland Advisors

————

Freddie Mac-Cashout refi proceeds plunge in Q4 ‘08 - U.S. homeowners coverted $17.5 billion in home equity to cash as they refinanced loans in the fourth quarter, the smallest amount since early 2001 - Reuters
————

Feds Allege Plot to Destroy Fannie Mae Data - By DAVID DISHNEAU - Associated Press - A fired Fannie Mae contract worker pleaded not guilty on Friday to charges he planted a virus designed to destroy all the data on the mortgage giant’s 4,000 computer servers nationwide, according to federal prosecutors. - Memphis Daily News

————

Bank of America Said to Defer Some Bonuses Over Three Years -  David Mildenberg and Josh Fineman - Bank of America Corp. is deferring payment of 2008 bonuses of $50,000 or more at its capital markets and investment banking units over three years, according to people familiar with the matter. … “This is historic,” said Jeanne Branthover, managing director in charge of global financial services for Boyden Global in New York, an executive search firm. “Employers can get away with anything right now because people are just happy to be employed.” … - Bloomberg

————

US regulator wants new FHLB “well capitalized” - … said on Tuesday it is seeking comment on adding a fifth classification of “well capitalized” for FHLBs, as is used for depository institutions. … The existing categories are adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. - Reuters

————

Tutorial – Credit Default Swap - Author: chartoftheday.com - riskcenter.com 

————

US Home Prices Sink to Lowest Levels of Almost Five Years - US existing home prices as measured by the S&P/Case-Shiller Home Price Indices have fallen to levels not seen in almost five years. - chart and commentary at Research Recap

————

Commercial paper probably needs more Fed help - As debt bought by Fed matures, analysts watch for return of private buyers - By Laura Mandaro,  - MarketWatch   - article indicates that signs of life are beginning to return to the CP market (BC)
————

GSE’s: Supply Curves Slope Up. Demand Curves Slope Down - Brad DeLong  - S&L (blue) vs GSE (red) shares 

————

Is There Still A Place For Jumbo Mortgages?  - by Robert Segal  - MortgageOrb  

————

LendingTree Enters The Reverse Mortgage Business - John Yedinak - LendingTree recently announced that it launched a reverse mortgage service for senior homeowners looking to talk with lenders.  The Charlotte, NC based company started providing brokers leads in 1998 through its lead exchange and grew into one of the largest lead providers in the country. - Reverse Mortgage Daily