Well, it happened sooner than I thought. Stocks around the world shot up Monday as fears of mortgage defaults on US held securities diminished. The US markets have been more cautious, but (with the exception of FNM and FRE) financials and home builders are up sharply.

It's all kind of ridiculous short-term trading as unquestionably this is bad news for economy as a whole and the housing market specifically. Are people really excited about the government running the mortgage industry? As Jim Rogers, CEO of Rogers Holdings, told CNBC Europe on Monday, the U.S. is "more communist than China right now".