The Binary Circumstance

Today the stock market soared to its biggest one-day gain in five years because the Fed is pumping another $200 billion into the banking industry. This is on top of the billions they’ve already pumped into the markets.

They are going to accept mortgage backed securities as collateral for the loans!

NEW YORK (AP) — Wall Street finally found a reason for a huge rally Tuesday after the Federal Reserve said it plans to pump $200 billion into the financial markets to help ease the strain from the credit crisis. The Dow Jones industrial average shot up more than 416 points, its biggest one-day point gain since July 2002.

The Fed’s program is part of a worldwide effort to help struggling banks and mortgage providers. The Fed — acting in concert with the European Central Bank, the Bank of Canada and the Swiss National Bank — agreed to loan investment banks money in exchange for debt, including slumping mortgage-backed securities.

This is what you call offloading the risk from wealthy bankers and stockholders to the taxpayers.

See the subprime cartoon slide show to understand how we got here and what the end result is.

Also, British comedians John Fortune and John Bird do a comic “interview” in this YouTube video which also explains how this credit crunch happened and why the Federal Reserve and other central banks are bailing the banks out.

Check out this really funny cartoon slide show that describes the mortgage mess and the resulting credit crisis.

Soupy Trumpet gives a revealing look inside the mind of Oklahoma City Legislator Sally Kern who claims that gays are worse than terrorists.

Yet another example of how religion is poison to the mind.

Religious beliefs are not facts, Sally. That’s why they’re called religion. People have faith because they have no facts.

Oh, and BTW, religion is indoctrination.

Sadly, Sally, like billions of others around the globe, is a victim of that brainwashing.

Here’s the direct link to the YouTube rant.

According to National City, a financial services group, many areas of the country still have housing that is overvalued by historical standards. According to their model, Western Washington is one of the most overvalued areas of the country.

An unflattering list says Western Washington is now home to some of the most overvalued real estate in the nation.

The financial services group – National City – found that home prices are falling sharply in most of the country, but the bubble hasn’t burst in the Northwest.

From Olympia to Bellingham, National City says home prices are overvalued from 29 percent on the low end to 44 percent at the high end in Bellingham, which is the 5th most overvalued market in the nation.

National City rates Mount Vernon the 13th most overvalued out of the 330 it tracks across the country.

The most overvalued city in the nation, according to that survey, is Bend, Oregon.

There is also a map that visually shows relative home valuations around the country and also the historical data upon which the ratings are based.

According to National City, Seattle homes are 30.7% overvalued which they call “moderately overvalued.”