Quick Economic Update

Citigroup just took a $49 Billion charge after deciding to take a bunch of exotic, and well below par, investments and put them on its books.

My guess it that they think that they will have to account for this piece of the big sh#@pile sooner or later, and that sooner is the better option.

And there are inflation worries, that are making Treasurys tumble. If this is a part of a trend, then we can see interest rates going way up.

Fannie Mae CEO expects home prices to fall 4 to 5 percent more in 2008.

I think that he is an optimist. My house is (according to Zillow) down 5% so far this year already.