LOLFED

A: A burning desire to REGULATE.

Clinton, Obama and McCain have been climbing all over each other this week proposing various homeowner bailouts. Lolrus was unavailable for comment, but one can speculate he would just like to have the bucket back when they are done.

NYT reports: “The Treasury Department will propose on Monday that Congress give the Federal Reserve broad new authority to oversee financial market stability, in effect allowing it to send SWAT teams into any corner of the industry or any institution that might pose a risk to the overall system.”

SWAT teams? You mean… with HELICOPTERS?

Euro reaches $1.58 today on strong, efficient German production numbers, general lack of win in US housing market, etc, etc.

In an interesting example of Democratic corporate welfare, Reuters reports: Former Federal Reserve Chairman Alan Greenspan and other economic experts should determine whether the U.S. government needs to buy up homes to stem the country’s housing crisis, Democratic presidential candidate Hillary Clinton will propose on Monday.

Clinton, a presidential candidate and senator from New York, said the Federal Housing Administration should “stand ready” to buy, restructure and resell failed mortgages to strengthen the ailing U.S. economy.

Implode-o-meter referred to it as a fox being let back into the henhouse.

Bear Stearns was halted this morning after vaulting 70% on word that yes, the shares might go for more than two dollaz!

Alan Greenspan shows off his moves.

From the L.A. Times:

Say it isn’t so: The Fed chairman, rapidly losing home equity in the housing bust?

Bloomberg News reports Fed Chairman Ben Bernanke’s Capitol Hill home is slipping in value and may soon be worth less than he paid for it. An economist quoted by Bloomberg estimates Bernanke’s house has lost $260,000 in value.

“Bernanke lives in Washington’s Capitol Hill area in a four- bedroom, 2,600-square-foot house he bought new in May 2004 for $839,000. Almost four years later, it may not be worth any more, according to real estate records and local agents.

More: “‘Even though he’s the Fed chairman, he’s going to get hit — but I think lot of people will in Washington,’ said William Wheaton, an economist at the Massachusetts Institute of Technology. The value of Bernanke’s home ‘probably went up to $1.1 million and it’s probably back down to $840,000,’ because prices in Washington just a couple years ago ‘out of control,’ Wheaton said.”

By request, a little (belated) commentary on one of Wall Street’s most hated:

Prince Al-Waleed, Savior of Citigroup

Thanks to the Fed (and Jamie Dimon’s balls of steel), JPMorgan was able to get the Bear Stearns deal done without any sovereign cash. There’s more liquid elsewhere than there is here, and a few other banks floundering about; it’s lookin kinda rough at Merrill for sure. Think we’ll see any big money from overseas pick up one of them before this is over?