Was That a Flush We Just Heard?

After billions of bailout money, Fannie and AIG are still struggling, as reported in today's Washington Post. Fannie lost $29 billion over the past three months, while AIG reported a $24.5 billion loss in the same period. As a certain senator from Illinois once said, "A billion here, a billion there, pretty soon you'll be talking about real money."

Oil Continues to Drop:

Are is it "drip"? In any event the news is good for most of us, because we still have to get back and forth to work and heat our houses. In Ohio, the price of gas dropped below $1.90 per gallon. More good news, people are still restricting their driving. Back when gasoline hit the four dollar mark this summer, folks suddenly decided it might be a good idea to drive less or use vehicles that got better mileage. That behavior still seems to be dominating, which is good news for the environment. (See The New York Times story.)

California Homes Not Worth What Their Owners Owe:

Mountain House, California, according to The New York Times, is the worst place in America to own a home, based on market value. Some 90 percent of the homes in this community are worth, on average, less than $122,000 what's owed on them. Ouch! That certainly doesn't smell so good.