The Washington Post - "U.S. Debt Expected To Soar This Year" (1-3-08)

"With President-elect Barack Obama and congressional Democrats considering a massive spending package aimed at pulling the nation out of recession, the national debt is projected to jump by as much as $2 trillion this year, an unprecedented increase that could test the world's appetite for financing U.S. government spending."

Seeking Alpha - "U.S. Housing: A False Dawn Recovery in 2009?" (1-4-08)

"Any prospect of a U.S. economic recovery in late 2009/early 2010 is clearly contingent on a stabilization of the housing market; indeed, alongside the scale of the meltdown in China, it is the key factor for global investors. Although median prices nationally have already retraced to early 2004 levels, perspective Japanese residential real estate fell an astonishing 75% in nominal terms over 15 years from the peak in 1990, and retraced back to 1984 levels. A remotely similar outcome in the U.S. would be devastating, given the level of consumer leverage. The latest S&P/Case-Shiller Home Price Indices for October 2008 show continued declines in the value of existing single family homes with 14 of 20 metropolitan areas now reporting declines in excess of 10% yoy. Having peaked nationally at $230k, median house prices are now down to just over $185k, compared to $140k at the beginning of the decade before the bubble began to inflate."

Reuters - "Fed has abandoned monetary policy, critic says" (1-4-08)

"The Federal Reserve has embarked on a campaign of unsupervised industrial policy to end the country's financial crisis, a move that could undermine its independence, a former top U.S. official said on Saturday. John Taylor, who was under secretary of treasury for international affairs from 2001 to 2005, said the explosive growth of the Fed's balance sheet since September was 'unbelievable.'"

The Washington Post - "For Jumbo Loans, an Unlucky 7" (1-3-08)

"Borrowers looking to take advantage of record-low interest rates may be out of luck if they need a home loan that exceeds $625,500. The average rate on these jumbo mortgages hit 7 percent this week for a 30-year fixed loan, even as rates for much smaller loans plunged to 5.28 percent, their lowest level in years, according to HSH Associates."