Words For 2010?

Morgan Stanley's chief European strategist believes the biggest theme for 2010 is how the Fed unwinds excess reserves from the system.

We call this reverse repo's.

http://ftalphaville.ft.com/blog/2010/01/04/119236/the-defining-feature-of-2010-will-be/

How the Fed is going to do this is entirely different.

http://www.ft.com/cms/s/0/bdcc9a80-f3e0-11de-ac55-00144feab49a.html

WRONG.

Let me tell you this. The biggest theme of 2010 is going to be:

HOUSING

Forget about jobs for the time being. We all know that employment is not coming back until 2011 at the earliest. We need to look at the trillions that have been needlessly wasted on propping up the housing market.

The biggest words from this theme is quite depressingly simply:

OPTION ARM and SHADOW INVENTORY

http://voiceofsandiego.org/toscano/article_0e2765d8-f7eb-11de-9cb4-001cc4c002e0.html

With the Obama Administration taking the Caps off of Fannie/Freddie, they have got to know that shadow inventory and the coming new wave of foreclosures stemming from ARM Resets are going to be devastating. This one piece of news coming out of Fannie/Freddie last week only tells me that 2010 is the year of 100% complete nationalization of the U.S. Housing Market/Homeowner.