Countrywide stock heading to zero, Fannie and Freddie in massive trouble, and the market tanks again. How was your Monday?

Well, the market seems to agree with HP - the BofA / Countrywide Toxic Mortgage ain't gonna happen and shares are in freefall again. Tough to effectively integrate a company when everyone is under investigation or heading to jail too...

Then you have a piece in Barron's about the future prospects of Fannie and Freddie and the massive - and I mean MASSIVE - writedowns to come. Can you say government bailout? Can you say ABSOLUTE F*CKING RAGE FROM HP'ERS? The fact that Fannie owns $314 BILLION in liar's loans alone should FREAK YOU OUT.

And then you have the NY governor (and Clinton supporter) about to resign after a hooker scandal, and yet Mozilo still runs Countrywide into the ground. How's that?

And of course, the stock market is tanking... again...

I swear, housing panic is everywhere.

BARRON'S COVER - Is Fannie Mae the Next Government Bailout?

IT'S PERHAPS THE CRUELEST OF ironies that in the U.S. housing market's greatest hour of need, the major entity created during the Depression to bring liquidity to housing, Fannie Mae, may itself soon be in need of bailout.

At year end, the company owned in its portfolio or had packaged and guaranteed some $2.8 trillion of mortgages or 23% of all U.S. residential mortgage debt outstanding.

But, if the truth be known, a considerable portion of Fannie's losses also came from speculative forays into higher-yielding but riskier mortgage products like subprime, Alt-A (a category between subprime and prime in credit quality) and dicey mortgages requiring monthly payments of interest only or less.

For example, Fannie's $314 billion of Alt-A -- often called liar loans because borrowers provide little documentation -- accounted for 31.4% of the company's credit losses while making up just 11.9% of its $2.5 trillion single-family-home credit book. Fannie was clearly looking for love -- and market share -- in some of the wrong places.

Funny youtube video on the mortgage meltdown and housing crash - "There's a Fine Fine Line Between a Gain and a Painful Decline"

Hat-tip to Doom for the find. Hilarious (and pretty catchy). You'll be singing this one in the shower. Very Avenue Q for those of you in the know...